Backpack Begins Identity Verification for FTX EU Claimants
By: Eva Baxter
In a significant development for former users of the defunct crypto exchange FTX EU, Backpack has officially launched the claims process to facilitate reimbursement. As per the announcement made on April 1, Backpack has begun identity verification for customers, marking a critical step towards managing claims and ensuring fund recovery for affected individuals. This initiative comes as part of Backpack's obligation to oversee the reimbursement process, having acquired FTX EU in January 2025.
To establish the legitimacy of each claim, Backpack requires users to complete a Know Your Customer (KYC) verification process using the same email credentials they had with FTX EU. This step is crucial in preventing fraudulent claims and safeguarding the disbursement process. While users have been informed about the verification phase, details regarding the timeline for actual fund withdrawals remain pending. Backpack has assured customers that additional instructions will be provided in due course and has emphasized its commitment to returning funds swiftly and securely.
With the acquisition of FTX EU, Backpack not only aims to manage the claims process but also expands its service offerings in the European region. The deal granted Backpack access to the MiFID II license previously held by FTX EU under the Cyprus Securities and Exchange Commission (CySEC), allowing it to offer compliant crypto derivatives across the EU. Through these efforts, Backpack seeks to rebuild trust within the digital asset industry, a sentiment echoed by its CEO, Armani Ferrante, who reiterated the company's focus on restoring user funds.
The broader FTX estate is also gearing up for its own repayment process. The bankrupt exchange has declared its intention to disburse claims exceeding $50,000 by May 30, more than two years after its collapse in November 2022. Despite these efforts, there is some contention among creditors about the calculation of repayments, as they argue that valuations do not account for the rise in cryptocurrency prices since the bankruptcy filing.
