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- FTX’s EU customers can now begin fund claims through Backpack’s two-step process, starting with identity verification.
- The second round of FTX payouts for creditors over $50,000 is set to begin on May 30.
- Backpack’s acquisition of FTX EU enables full crypto services, supporting regional fund recovery efforts.
Backpack, the crypto exchange created by former FTX executives, has opened the process of bringing money to FTX’s EU clients. On April 1, the company posted a two-step plan to assist users in getting back their euro funds. The first one, identity verification, is available now, and the second one, the withdrawal of funds, is going to be released soon.
The company began global repayments after the approval of FTX’s Chapter 11 bankruptcy reorganization plan in October 2024. He was awarded this move after the approval of a U.S. bankruptcy judge, which paved the way for the creditors to be paid. BitGo and Kraken were chosen to perform the technical side of the distribution of the funds. Backpack’s involvement is limited only to the FTX’s customers in the EU with reference to the regional Claim process.
FTX EU Licenses Reinstated
Backpack’s involvement with the EU’s economy is attributed to the purchase of FTX’s European subsidiary. This deal was signed with the permission of the FTX bankruptcy court and the Cyprus Securities and Exchange Commission in December 2024, and it returned FTX EU licenses. Consequently, Backpack can provide complete crypto derivative trading services to EU-based customers.
However, FTX filed for bankruptcy in November 2022, starting the repayment process of $13 billion. The first of the scheduled payments started on the 18th of February 2025 and is devoted to “convenience class” creditors. For the creditors with claims of up to $50,000, full payment will be paid to them together with 9% interest from November 2022. In reference to outstanding creditors, they will be paid back by April 11.
Backpack Supports Fund Distribution
Earlier this month, the creditor representative, Sunil, confirmed that the second round of distributions will be made on May 30. This distribution will address creditors with above $50,000. The second round contributes towards the management of the remaining claims and is a step further in the process of recovery.
Creditors are gradually gaining access to the recovery process of FTX. With Kraken, BitGo, and now Backpack paving the way that the distribution of the funds is slowly taking shape. Thus, EU customers receive clarity and assistance from Backpack, which is involved in this process.
More FTX creditors will be compensated, and their recovery will help stabilize the situation to some extent in the future. The effect of FTX’s failure is seen all over the world of cryptocurrency, though the ongoing efforts to repay it provide hope for the affected. The cryptocurrency market is still being impacted by FTX’s collapse, with more dominoes set to fall in the following months.
