Backpack, the crypto exchange that acquired the European unit of FTX, has started the process of distributing claims to affected FTX EU customers. According to yesterday’s (Tuesday’s) announcement, the new owner is asking former FTX EU customers to create an account on the exchange, submit Know Your Customer (KYC) information, and link it to their FTX EU claim account.
FTX EU Customers Must Complete KYC
The distribution of claims will be a two-step process: KYC and fund distribution. Although Backpack has initiated the KYC step, it has not yet announced any dates for the actual fund payouts.
Additionally, former FTX customers will need to pay a withdrawal fee of €5 ($5.39) for claims under €2,000 ($2,158), and 0.25% of the total claim for amounts above €2,000.
“You will not be able to claim your distribution immediately upon signing up,” the support page of the claim distribution explained. “The Backpack team is working hard to distribute FTX EU claims as quickly as possible in coordination with all relevant parties. Until then, distributions will only become available after Step 2 is complete.”
Former FTX EU customers may now begin the two-step process to claim their Euro funds via Backpack EU.Step 1, identity verification, is live.Get Verified: https://t.co/qvUDpbsEdQ pic.twitter.com/ECcHFumG18
— Backpack 🎒 (@Backpack) April 1, 2025
You may also like: Backpack Hits Back at FTX: Asserts Ownership Claim on the Cypriot Entity
The Long Wait of FTX Creditors Is Ending
Meanwhile, the US-based bankruptcy estate of FTX has confirmed that it will begin repaying major creditors in cash from the end of May. The bankruptcy estate has accumulated $11.4 billion in cash since the exchange’s collapse.
Smaller creditors of FTX, which the bankruptcy estate refers to as “convenience claims,” have already started to receive their payouts. However, larger claimants are expected to begin receiving their distributions from May 30, 2025.
FTX was run by Sam Bankman-Fried from its headquarters in the Bahamas. The crypto exchange collapsed overnight in November 2022 after shady business practices by the company’s management were revealed, prompting a wave of customer withdrawal requests. FTX soon filed for bankruptcy, and Bankman-Fried was eventually convicted of fraud and is now serving a 25-year prison sentence.
FTX’s EU unit operated under a licence from the Cyprus Securities and Exchange Commission (CySEC), which suspended it following the global collapse of FTX. Backpack announced its acquisition of FTX EU in early 2025, and according to reports, the deal closed at $32.7 million.
This article was written by Arnab Shome at www.financemagnates.com.
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