FTX EU Users Begin Euro Withdrawals via Backpack as Crypto Remains Frozen
By: Isha Das
In a significant move for former FTX EU users, Backpack has initiated a program to allow withdrawals of frozen euro balances. This comes after Backpack's acquisition of FTX's European arm, Trek Labs Europe LTD, earlier this year, marking an essential phase in the restitution process for clients affected by the collapse of the cryptocurrency exchange.
Customers are required to undergo a two-step process to access their funds. Firstly, users must complete a Know Your Customer (KYC) verification process that ensures the information provided matches previous records with FTX EU. Once verified, users can request their euro balances through a dedicated withdrawal portal. It's worth noting that while euro withdrawals have been activated, cryptocurrency withdrawals remain unavailable, restricting access to digital currency assets.
The withdrawal process is fairly detailed. Users must submit a withdrawal request on Backpack's platform and provide their bank details alongside a bank statement not older than three months. These details need to match with records on file to ensure transparency and avoid fraudulent claims. The cost of withdrawals varies, depending on the amount, with a fee structure designed by Backpack’s banking partners. These include a €8 fee for transactions under €2,000, and larger fees for higher amounts, with a cap at €353 for substantial withdrawals.
Backpack has cautioned that due to potential high demand and banking limitations at the start of this initiative, there might be delays in processing requests. This new phase in the Backpack restoration program underlines the complexities of resolving issues stemming from major financial discordances in the cryptocurrency world. Victims of the FTX EU debacle now have a pathway to retrieve at least their fiat currency holdings, though their crypto assets remain in limbo. This development sets an example of how financial interventions can assist users in reclaiming what’s rightfully theirs, despite the long and arduous road to complete recovery.
