Urgent Update: Backpack Opens Long-Awaited Claims for FTX EU Users

For former FTX EU users, the wait for a resolution has been long and fraught with uncertainty since the exchange’s collapse in 2022. Now, there’s finally a glimmer of hope. Backpack, the crypto exchange that acquired FTX EU, has officially launched the claims process, marking a significant step towards potential crypto reimbursement for affected individuals. This development is crucial for European crypto users who have been anxiously awaiting news about recovering their funds.

What’s the Buzz Around Backpack Claims for FTX EU Users?

Backpack has announced the first phase of its claims process, designed specifically for former FTX EU users. This initial phase requires users to take several key steps to initiate their claim. According to their April 1st announcement, the process involves:

• Creating a Backpack Account: Users must first establish an account on the Backpack exchange platform.
• Completing KYC Verification: Standard Know Your Customer (KYC) procedures are in place to verify user identities.
• Linking to FTX EU Claim Account: The crucial step is connecting their new Backpack account to their existing FTX EU claim account.

Currently, Backpack has not specified a deadline for this initial phase, nor have they provided a concrete timeline for when distributions will commence. This leaves some ambiguity, but the initiation of the process itself is a positive sign for European crypto users.

Navigating the Claims Process: What European Crypto Users Need to Know

For those eager to begin, understanding the specifics of the Backpack claims process is vital. Here’s a breakdown of key details:

• No Deadline Yet: While there’s no immediate rush, it’s advisable for FTX EU users to start the process promptly to avoid any potential future deadlines. Keep an eye on Backpack’s official announcements for updates.
• Withdrawal Fees: Be aware of the withdrawal fees associated with claims. For claims under €2,000 ($2,158), a flat fee of €5 ($5.39) applies. For amounts exceeding this, a 0.25% fee will be charged.
• Euro-Denominated Claims: All positions were closed using market prices at the time of the FTX EU shutdown and settled in euros. This means reimbursements will be distributed in euros, regardless of the original cryptocurrency held.
• Pending Crypto Withdrawals: If you had pending cryptocurrency withdrawals on FTX EU before November 11, 2022, you should have filed a claim in the FTX US bankruptcy proceedings. Backpack is not handling these claims, which are managed by the FTX Recovery Trust.
• Pre-March 2022 FTX EU Accounts: Crucially, EU residents who signed up for FTX before March 7, 2022, are considered FTX International customers, not FTX EU customers. Their claims should be directed to FTX International, not through Backpack.

Unpacking the FTX Bankruptcy and Its Ripple Effects on European Crypto Users

The FTX bankruptcy has been a complex and multi-layered event, with different entities and jurisdictions involved. Backpack’s acquisition of FTX EU in January 2025 was intended to offer crypto derivatives in Europe, but it also came with the responsibility of handling these user claims. The acquisition itself was the culmination of a prolonged effort to secure the European arm of the bankrupt exchange.

Backpack CEO Armani Ferrante emphasized the company’s commitment to returning FTX EU users‘ funds swiftly and securely at the time of acquisition. However, skepticism remained. Sunil Kavuri, an FTX creditor activist, expressed concerns in January 2025, highlighting the “confusion and nervousness” among FTX EU users regarding who would ultimately distribute their funds – Backpack, Kraken, or BitGo.

Understanding Crypto Reimbursement: What to Expect?

While the initiation of the Backpack claims process is a positive development, it’s important for European crypto users to manage expectations regarding crypto reimbursement.

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Key points to consider about the reimbursement process:

• Market Price Settlement: As mentioned earlier, claims are settled based on market prices at the time of the FTX EU shutdown. This means the value you receive might not reflect current market prices, especially for volatile cryptocurrencies.
• Withdrawal Fees Impact: Factor in the withdrawal fees, especially for smaller claims, as they can reduce the net amount received.
• Timeline Uncertainty: Backpack has not yet provided a definitive timeline for distributions. Patience will be necessary as the process unfolds.
• Separate from FTX US Bankruptcy: Remember that this process is specifically for FTX EU users and is distinct from the ongoing FTX US bankruptcy proceedings and distributions managed by the FTX Recovery Trust.

Looking Ahead: What’s Next for FTX EU Users Seeking Reimbursement?

The launch of the Backpack claims process is a significant step forward for European crypto users impacted by the FTX collapse. While details like the exact distribution timeline are still pending, the initiation of claims is a tangible move towards resolving this protracted situation.

Keep an eye on official announcements from Backpack for further updates and deadlines. For European crypto users who have been waiting for resolution, this claims process offers a pathway, albeit with fees and a potentially lengthy wait, to recover a portion of their assets from the FTX bankruptcy fallout.