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Two-Step Process Marks Major Step for European Crypto Victims
Backpack, a regulated digital asset exchange, has officially launched a two-step claims process aimed at returning funds to former users of FTX EU, the European division of the failed FTX crypto exchange. The initiative, announced on April 1, 2025, marks one of the first concrete repayment channels available to European customers since FTX's collapse in November 2022. While the broader FTX bankruptcy process remains ongoing, Backpack’s approach focuses exclusively on users who were registered with FTX EU and does not intersect with the U.S.-based proceedings.
The first phase of the process—identity verification—is now live. Customers must complete Know Your Customer (KYC) checks using the same email address they originally used to register on FTX EU. Backpack emphasized that this initial step is critical for verifying legitimate claims and minimizing the risk of fraudulent requests. The exchange has committed to ensuring a secure and compliant recovery framework, noting that the identity check is mandatory for participation in the reimbursement program.
Withdrawals, the second phase of the process, have yet to open. However, Backpack stated that additional guidance will be released soon regarding fund disbursement. The claims process applies strictly to Euro-denominated funds previously held on the FTX EU platform and excludes any claims tied to FTX International or the U.S. bankruptcy estate. Affected customers have been urged to confirm their original FTX affiliation, as it directly determines their eligibility under Backpack’s framework.
“It’s been a long, complicated process with multiple parties, but we’re happy to finally open up identity verification for FTX EU customers on our website,” said Armani Ferrante, CEO of Backpack. “Returning funds as quickly and safely as possible is our number one priority, and we’re here to answer any questions along the way.” Ferrante’s remarks reflect the company’s attempt to provide clarity and relief to users caught in the aftermath of FTX’s global implosion.
Backpack’s claims initiative follows its acquisition of FTX EU earlier this year. The exchange secured regulatory approval from the Cyprus Securities and Exchange Commission (CySEC) in January 2025, along with a bankruptcy court’s consent to proceed with the deal. The acquisition transferred FTX EU’s MiFID II license to Backpack, allowing it to operate a regulated derivatives platform across the European Union and assume responsibility for settling outstanding claims owed to FTX EU customers.
The effort runs separately from the FTX estate’s global creditor repayment plan. That program, which began issuing distributions on February 18, 2025, is preparing for another round of payments based on a record date of April 11. Creditors with allowed claims exceeding $50,000 are expected to receive payouts starting May 30—over two years after FTX’s collapse. The estate has stated that most creditors will receive up to 118% of their debt values based on the original bankruptcy filing. Critics, however, argue that this figure fails to account for the surge in cryptocurrency valuations since the exchange’s downfall.
Backpack disclosed the launch of its FTX EU claims process through its official X account, confirming that identity verification is now accessible. The company also underscored the availability of dedicated customer support and detailed FAQs to assist users navigating the process. While withdrawals are not yet available, the launch signals tangible progress in the broader effort to return lost funds to victims of one of the largest collapses in crypto history.
This article has been refined and enhanced by ChatGPT.
