Backpack Initiates Fund Claim Process for FTX EU Customers
Crypto trading firm Backpack, which successfully acquired the European branch of the now-defunct exchange FTX, has officially commenced the process for customers to reclaim their funds. In a recent announcement on X (formerly Twitter), Backpack informed customers that they should complete the initial step of the know-your-customer (KYC) verification.
This KYC process is essential for ensuring that all claims are legitimate before any funds can be distributed. Following the completion of the KYC verification, customers will enter the second phase, which involves the actual distribution of funds. However, the timeline for when this distribution will take place remains uncertain, with Backpack indicating it will be addressed as “coming later” on their FAQ page.
It’s worth noting that Backpack’s acquisition of FTX EU, which was finalized for $32.7 million in January, has faced criticism from the bankruptcy estate of the broader FTX entity. The FTX estate has stated that Backpack was not involved in the U.S. bankruptcy court-approved procedures for the return of funds and highlighted that Backpack lacks the authorization to initiate any distributions to customers at this time.
In the wake of FTX’s collapse in 2022, the company has managed to gather an impressive $11.4 billion in cash, which is earmarked for distribution to affected parties. According to recent updates, these payments are expected to commence at the end of May, providing some hope for those who lost funds during the exchange’s downfall.
