Backpack exchange begins asset recovery for former FTX EU customers

Backpack Exchange started off a formal procedure to help former FTX EU clients recover their funds. The company launched a claims process on April 1, 2025, to help return assets to affected users.

The firm posted a link on X that former FTX EU customers can use to identify themselves. Former customers must complete a know-your-customer (KYC) to initiate the process of recovering any lost funds.

Backpack Exchange rescues FTX EU, aims to expedite customer payouts

Once one of the world’s largest cryptocurrency exchanges, FTX collapsed in November 2022, leaving millions of users unable to access their funds. The company collapsed amid a liquidity crisis and fraud allegations.

The news uncovered that Alameda Research, a closely related trading company to FTX, had invested billions of dollars of client funds in dubious investments. As clients flocked to withdraw their cash, FTX had insufficient funds to accommodate the demands, sending investors into chaos and the company’s swift downfall.

FTX and Alameda Research collapsed on November 11, 2022. Further investigations indicated that FTX’s founder and chief executive, Sam Bankman-Fried, had diverted customer deposits. He was charged and convicted of fraud and conspiracy.

The European subsidiary, FTX EU, was also impacted. Even with the stricter European oversight, customer assets in the broader FTX bankruptcy were trapped. FTX EU was purchased in January 2025 by Backpack Exchange, a regulated global cryptocurrency platform founded by ex-FTX and Alameda Research staff.

The FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC) gave the acquisition the green light, allowing Backpack to scale its services throughout Europe. As part of the acquisition, Backpack would have handled the distribution of court-eventually approved bankruptcy claims to FTX EU customers, with a target to speed up the restitution process.

Backpack Exchange has structured a claims process to facilitate customer restitution

Backpack Exchange has created a simple process to recover funds for the affected FTX EU clients. 

The process starts with identity verification, requiring users to utilize a responsive verification system. The step is live and can be accessed via Backpack’s official claims page.

Users who have successfully passed the verification process can then withdraw their funds. Backpack will share instructions as soon as the withdrawal phase goes live

CEO Armani Ferrante stated that this is a significant effort and reaffirmed restitution to customers as a central element of building trust and confidence across the industry. 

Backpack Exchange has also made extensive support accessible across supported channels to assist users in recovery.

The community is reacting and sharing feedback on social media

The request for the asset recovery process brought different views within the crypto ecosystem. Responses from users on the social media platform have been optimistic and sceptical. “It’s been a really long road for us,” one user posted. Another said, “This is the minimum they could do after all of this time. I hope it will not take long.” Another one stated.

The structured claims process is a great step in the right direction to re-attach FTX EU customers’ funds to the company while the company is now where it needed to be from the beginning, in the customer’s hands. 

As the Backpack Exchange aims to rebalance, however, the gaze of the cryptocurrency community will fall on them to secure their trust for good.

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