Michaela
Crypto exchange Backpack has initiated the first phase of its claims process for former FTX EU users, following its acquisition of FTX’s European operations earlier this year. This development coincides with Backpack’s expansion of crypto derivatives offerings throughout the region.
In a post on X on April 1, the exchange revealed that customers can now initiate a two-step process to retrieve their Euro funds through Backpack EU.
Backpack has not specified a deadline for this stage of the claims process and has not yet announced when distributions will start. Users seeking withdrawals will incur a €5 ($5.39) fee for claims under €2,000 ($2,158), with a 0.25% fee applied to amounts exceeding that threshold.
Additionally, Backpack released a set of FAQs to clarify the claims process. The exchange explained that while users can begin the two-step process to claim their funds, they will not receive their claim immediately upon registration. Once distributions begin, claimants will be notified via email and can then access and withdraw their balances.
“The Backpack team is working hard to distribute FTX EU claims as quickly as possible in coordination with all relevant parties,” Backpack stated.
The FAQ page further explains that all positions were closed at market prices when the exchange ceased operations, with settlements made in euros.
EU residents who registered with FTX prior to March 7, 2022, are not classified as FTX EU customers and are advised to submit their claims to FTX International rather than Backpack.
Backpack Acquires FTX EU, Prepares Payments
In early January, Backpack acquired FTX EU, the European arm of the now-defunct FTX exchange. The acquisition received approval from both the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC). This move enables Backpack to offer regulated crypto derivatives and other financial products to users throughout Europe.
Backpack’s new European branch will provide a range of crypto derivatives, including perpetual futures, filling the gap left by other exchanges that have withdrawn from the region.
FTX Digital Markets, distinct from FTX EU, began its first round of reimbursements on February 18, with BitGo and Kraken facilitating the process. This initial distribution targeted “Convenience Class” members, those with claims under $50,000.
The next round, tied to FTX’s US bankruptcy proceedings, is scheduled for May 30 and 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.
Read More
- FTX $11.4B Payout Locks Crypto at 2022 Lows—Bullish or Brutal?
- FTX/Alameda Unstakes 3.03M SOL, Raising Concerns Over Potential Impact
- FTX Bahamas Arm to Start Repaying Creditors on February 18
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
