Key Notes
- Backpack has started the inaugural process that will see FTX EU refunding.
- The exchange acquired FTX EU with a commitment to repaying creditors.
- FTX Bahamas commenced repayments earlier last year.
Backpack crypto exchange has opened the verification process for former FTX EU customers, marking a key step in the long-awaited repayment process.
This recent development follows Backpack’s acquisition of FTX EU earlier this year and its commitment to handling users’ claims and reimbursements.
Identity Verification Process Begins
According to a recent report, Backpack officially launched its claims verification process on April 1. According to the update, this will allow former FTX EU users to confirm their identities before any repayments take place.
According to the firm’s website, customers must complete a Know Your Customer (KYC) verification using the same email address they used on FTX EU. Reports show that the company chose this requirement to avoid fraudulent claims and facilitate a smooth reimbursement process.
Furthermore, Backpack Chief Executive Officer Armani Ferrante acknowledged that the process has been complicated because it involves different parties. However, he disclosed his excitement as the verification process finally opened. He also assured users that the exchange is working to return their money as soon as possible.
As of now, users can only verify their identity. Reports show that the withdrawal instructions will be announced in due time. Still, Backpack has promised to share updates as soon as
As reported by Coinspeaker, Backpack successfully acquired FTX EU in January 2025. For context, the acquisition was approved by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC).
As part of the deal, Backpack also secured access to FTX EU’s trading license. This allows it to offer licensed cryptocurrency derivatives trading across Europe, with a strong focus on compliance and customer trust.
Following the acquisition of FTX EU, Backpack signed an agreement to handle repayments to former customers. The company has repeated that its main goal is to return funds to users. This latest development reassures former FTX EU customers that they will regain their locked funds after waiting since the platform collapsed in November 2022.
FTX Estate Plans Large Creditor Repayments
Meanwhile, there are reports that the broader FTX estate is also finalizing plans to repay creditors. As detailed, by May 30, the bankrupt exchange plans to start making large payments to those owed more than $50,000. This will be one of the biggest disbursements since FTX went bankrupt.
The embattled platform is certain that most claimants will get back about 118% of what they were owed based on the values recorded at the time of the bankruptcy. However, some creditors have expressed displeasure, stating that this does not cover the increase in crypto prices since then.
In addition, many analysts suggest this payment process positively impacts the crypto market, though many creditors with larger claims will continue waiting for future distributions.
Some influencers added that this would comfort and reassure the users affected that they would be receiving their money back.
Meanwhile, the first round of repayments to FTX creditors began in February. The repayments at the time were crucial for those who lost funds in the exchange’s historic collapse. The Bahamian arm of FTX, which was caught in the crossfire when the company fell apart in 2022, has started reimbursing users with claims under $50,000 .
nextDisclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
