Key Takeaways
- Backpack Exchange has launched the withdrawal process for former FTX EU customers, months after opening claims.
- The process requires a two-step verification through Backpack EU’s platform.
- The acquisition of FTX EU has been mired in controversy over ownership and regulatory approval.
Backpack Exchange, a Germany-based crypto platform, announced Monday that former FTX EU users can now withdraw funds, marking the final phase of its repayment initiative.
The announcement comes amid an ongoing dispute with the FTX bankruptcy estate over the legal status of Backpack’s acquisition of FTX EU.
Backpack Launches FTX EU Claim Withdrawals
The claims process officially opened in April, allowing users to verify their identity and link past FTX EU accounts. The exchange said customers could withdraw euro-denominated balances following a brief KYC process.
However, the legitimacy of the deal and the payout process remain in question.
While Backpack says CySEC and the FTX bankruptcy court approved its acquisition of FTX EU, the FTX estate denied any knowledge of the sale and insisted that FTX EU is still part of the estate’s asset pool.
Despite these claims, Backpack has pushed forward, stating it acquired FTX EU from former executives Patrick Gruhn and Robin Matzke and is committed to honoring customer claims.
The platform’s support site outlines withdrawal fees—€5 for claims under €2,000, and 0.25% for larger amounts.
FTX Payouts Continue as Estate Moves Ahead With U.S. Claims
While the Backpack-FTX EU situation remains murky, the broader FTX bankruptcy process continues.
U.S. customers began receiving payments in February, with the next tranche scheduled for May 30. The FTX estate expects to repay over $11 billion to creditors across multiple claim classes.
FTX, once valued at $30 billion, collapsed in late 2022 following fraud revelations tied to its founder, Sam Bankman-Fried (SBF).
SBF was sentenced to 25 years in prison in March 2024, while other top executives accepted plea deals and received shorter sentences.
The status of former FTX EU customers now hangs in a regulatory gray area between Backpack’s self-managed claims process and the FTX estate’s insistence on handling repayments itself.
For users, the biggest question remains: who is ultimately responsible for their money?
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
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