Claim Process Initiated by Backpack for Ex-FTX EU Clients

Crypto exchange Backpack has taken a significant step forward in the European market by acquiring the European operations of the now-defunct FTX exchange. This move, approved by both the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC), marks a new chapter for Backpack as they aim to fill the gap left by other exchanges that have withdrawn from the region.

Backpack, led by ex-FTX manager Armani Ferrante, has initiated the first phase of the claims process for former FTX EU users. The exchange has released a set of FAQs to clarify the process, which can be found on their website. However, it's important to note that EU residents who registered with FTX prior to March 7, 2022, are advised to submit their claims to FTX International, not Backpack.

The initial reimbursements, which did not involve FTX EU users, were made by FTX Digital Markets on February 18. BitGo and Kraken facilitated the process, and the next round of reimbursements is scheduled for May 30. This round will cover creditors in Class 5 Customer Entitlement Claims and Class 6 General Unsecured Claims. FTX plans to utilize $11.4 billion for these upcoming payments.

All positions were closed at market prices when the exchange ceased operations, with settlements made in euros. Settlements for FTX EU users will be handled through Backpack. It's worth mentioning that FTX Digital Markets is distributing reimbursements separately from FTX EU's claims process.

Backpack's European branch will provide a range of crypto derivatives, including perpetual futures. The exchange is also expanding its crypto derivatives offerings throughout the region. The acquisition enables Backpack to offer regulated crypto derivatives and other financial products to users throughout Europe.

Customers can now initiate a two-step process to retrieve their Euro funds through Backpack EU. Users seeking withdrawals will incur a €5 ($5.39) fee for claims under €2,000 ($2,158), and a 0.25% fee for amounts exceeding that threshold.

Distributions of Euro funds have not yet started for FTX EU users, and Backpack has not specified a deadline for this stage of the claims process. The exchange encourages users to stay updated through their website and FAQs as more information becomes available.

As Backpack continues to expand its operations and distribute FTX EU claims as quickly as possible, it's an exciting time for the crypto industry in Europe. With a focus on transparency, user-friendly processes, and a wide range of offerings, Backpack is well-positioned to make a significant impact in the European market.