Backpack Begins FTX EU Claims Process, But Uncertainty Lingers for Former Users

Crypto exchange Backpack has officially launched the first phase of its claims process for former FTX EU customers. The announcement, made on April 1, outlines the necessary steps for affected users, who must create an account, submit Know Your Customer (KYC) details, and link it to their FTX EU claim. However, while this marks a critical step forward, Backpack has yet to specify when distributions will actually commence, leaving many users in a state of uncertainty.

To add to the concerns, withdrawals from the claims process are not entirely free. Users with claims under €2,000 ($2,158) will face a flat €5 ($5.39) withdrawal fee, while those with higher claims will be charged 0.25% of their total amount. Despite the lack of a defined deadline for this phase, many former FTX EU users are now navigating the process in hopes of finally reclaiming their lost funds.

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Acquisition Sparks Confusion

Backpack’s involvement with FTX EU dates back to January 2025, when the exchange successfully acquired the European arm of the bankrupt trading platform. The deal put an end to months of legal wrangling over who would take control of FTX EU’s assets, granting Backpack the ability to offer crypto derivatives, including perpetual futures, across Europe.

At the time of the acquisition, Backpack CEO Armani Ferrante assured customers that the company was committed to returning their funds “as fast and as safely as possible.” However, some creditors remain skeptical. 

FTX creditor activist Sunil Kavuri previously voiced concerns that the acquisition had introduced more confusion rather than clarity. Some customers, he pointed out, were unsure whether their funds would be repaid by Backpack, Kraken, or BitGo—companies that have all played a role in FTX’s broader bankruptcy proceedings.

Next Wave of FTX Distributions Slated for May 30

Meanwhile, in a separate but related development, FTX Digital Markets, another entity tied to the collapsed exchange, has already begun reimbursing creditors. Its first round of distributions went out in February, targeting those with claims under $50,000. 

The next wave, scheduled for May 30, will cater to Class 5 Customer Entitlement Claims and Class 6 General Unsecured Claims, with $11.4 billion allocated for payouts.

As the claims process unfolds, former FTX EU customers are left waiting for clearer timelines and a concrete path to retrieving their funds. While Backpack’s initiative represents progress, it remains to be seen whether it will deliver on its promise of swift and seamless reimbursements.

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