Backpack, a cryptocurrency exchange founded by former FTX executives, has initiated the claim process for FTX’s European customers as part of the ongoing efforts to distribute bankruptcy recovery funds. This development marks a pivotal step in addressing the aftermath of the FTX collapse and ensuring that creditors receive their due payments.

FTX EU Fund Claim Process: What You Need to Know

On April 1, Backpack announced the launch of a two-step process for eligible customers to claim their funds. The first step, identity verification, is now live, while the second step, which involves fund withdrawals, will be announced soon. This structured approach aims to streamline the repayment process for creditors impacted by the FTX bankruptcy.

Step-by-Step Process

  • Step 1: Identity Verification – Customers are required to complete identity verification to confirm their eligibility for repayment. This step ensures compliance with regulatory requirements and prevents fraudulent claims.
  • Step 2: Fund Withdrawal – Once identity verification is complete, customers will be notified about the withdrawal process. Specific details and timelines for this step are expected to be shared shortly.

Former FTX EU customers are encouraged to begin the verification process promptly to secure their claims to euro funds.

FTX Bankruptcy Recovery Efforts

FTX’s Chapter 11 bankruptcy reorganization plan, approved by a U.S. bankruptcy judge in October 2024, has paved the way for the distribution of funds to creditors. This approval marked a significant milestone in the repayment efforts, with global distribution partners Kraken and BitGo tasked with handling the technical aspects of fund disbursement.

While Kraken and BitGo are managing the broader repayment process, Backpack’s involvement is specific to the repayment of funds to FTX’s European customers. Backpack acquired the former European arm of the FTX exchange in December 2024, a move approved by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission. This acquisition allowed Backpack to reinstate FTX EU’s licenses and offer a full suite of crypto derivatives trading services to customers in the region.

FTX Repayment Timeline and Updates

The repayment process officially began on February 18, 2025, focusing initially on “convenience class” creditors—those with claims up to $50,000. These creditors are slated to receive full compensation for their adjudicated claim value, along with an annual interest rate of 9% dating back to November 2022. The first round of payments is scheduled to be completed by April 11.

In addition, the second round of payouts, covering claims above $50,000, is set to commence on May 30, as confirmed by FTX creditor representative Sunil earlier this month. This next phase will address larger claims and ensure further progress in the bankruptcy recovery efforts.

Key Takeaways for Crypto Investors

The FTX collapse serves as a reminder of the importance of due diligence and risk management when investing in cryptocurrency platforms. For affected creditors, the structured repayment process offers a roadmap for recovery, while Backpack’s proactive steps highlight the role of responsible entities in rebuilding trust within the crypto community.

As the crypto industry continues to evolve, staying informed about developments like fund recovery processes and regulatory changes is essential for both beginners and seasoned investors.

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