Overview

Crypto trading firm Backpack, which purchased the European division of the bankrupt exchange FTX, has begun the process enabling customers to claim their funds.

Backpack, acquiring FTX EU for $32.7 million in January, instructed customers to complete the initial step of know-your-customer (KYC) verification in a post on X this Tuesday.

Next Steps:

• The subsequent step involves disbursing funds, although a timeline for this remains uncertain. Backpack’s FAQ page notes that this will be “coming later”.

Criticism: The acquisition faced scrutiny from the bankruptcy estate of the overall entity of FTX, asserting that Backpack lacked participation in the U.S. bankruptcy court-sanctioned process for fund restoration and did not have authority to distribute customer payouts.

FTX has amassed $11.4 billion in cash, set to be released to affected parties following its collapse in 2022, with distributions slated to begin by the end of May.