Crypto trading firm Backpack, which acquired the European arm of the now-defunct exchange FTX, has officially commenced the process for customers to claim their funds. This step comes after Backpack purchased FTX EU for $32.7 million in January of this year.
In a recent announcement on X, Backpack directed customers to initiate the first step of the know-your-customer (KYC) verification process. Completing this verification is essential for customers who wish to reclaim their funds, marking a pivotal move towards resolving the challenges stemming from FTX’s bankruptcy.
Following the KYC verification, the second phase of the process will involve the distribution of funds; however, specific timelines for this distribution remain uncertain. On its FAQ page, Backpack indicates that these distributions will be announced as ‘coming later.’
It’s important to note that Backpack’s acquisition of FTX EU has not been without controversy. The bankruptcy estate for the broader FTX entity has publicly criticized the sale, asserting that Backpack had no involvement in the legally sanctioned bankruptcy court process aimed at reimbursing affected customers. They have claimed that Backpack lacks the authorization necessary to distribute any funds to customers.
As the situation evolves, it’s worth mentioning that FTX has already gathered approximately $11.4 billion in cash aimed at compensating parties impacted by its collapse in 2022. Payments from this fund are slated to begin at the end of May, potentially offering some relief to creditors awaiting resolution.
As the crypto landscape continues to shift, the developments surrounding Backpack and FTX EU will remain a focal point for many stakeholders in the industry.
