Backpack, a crypto exchange founded by former FTX executives, has initiated the fund claim process for FTX’s EU customers as part of the ongoing global efforts to distribute FTX bankruptcy recovery funds.
On April 1, Backpack announced the launch of a two-step process for customers to claim their euro funds. Step 1, identity verification, is now live, while Step 2, the withdrawal of funds, will be announced soon.
FTX’s Chapter 11 bankruptcy reorganization plan was approved by a U.S. bankruptcy judge in October 2024, paving the way for the distribution of funds to creditors. This approval set the stage for the commencement of repayment efforts, with Kraken and BitGo handling the global distributions.
While Kraken and BitGo were selected as the official partners to assist with the technical aspects of repaying creditors during the bankruptcy proceedings, Backpack’s role in the repayment process of FTX’s EU customers’ funds is part of the acquisition deal. Backpack has just acquired the former European arm of the FTX exchange, which was approved by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission in December last year. This allowed Backpack to reinstate FTX EU’s licenses and offer a full suite of crypto derivatives trading services to EU customers.
FTX crypto exchange, which filed for bankruptcy in November 2022, commenced its $13 billion repayment process on Feb. 18, focusing initially on “convenience class” creditors—those with claims up to $50,000, with repayments facilitated by BitGo and Kraken. These creditors are slated to receive full compensation for their adjudicated claim value plus an annual interest rate of 9% dating back to November 2022, by April 11.
Earlier this month, FTX creditor representative Sunil confirmed that the second round of payout distribution, covering claims both and above $50,000, will take place on May 30.
