Backpack Exchange Begins Fund Withdrawals for Former FTX EU Users

Backpack Exchange Unlocks Access to Frozen FTX EU Funds

In a long-awaited move, Backpack Exchange has officially launched the withdrawal process for former FTX EU users, offering them a lifeline after the collapse of FTX in 2022. Starting May 12, 2025, eligible users can begin the claims process for a slice of €55 million Backpack has earmarked for repayments. Backpack acquired FTX EU for $32.7 million earlier this year, finalizing the deal in January 2025. The acquisition positioned Backpack to take control of customer obligations tied specifically to FTX EU, the CySEC-regulated arm of Sam Bankman-Fried’s crypto empire. FTX EU’s license was suspended after the parent exchange collapsed amid revelations of fraud and mismanagement—leading to Bankman-Fried’s 25-year prison sentence.

KYC Is Mandatory — Fees Apply

To access their funds, former FTX EU users must sign up on the Backpack EU platform and complete a mandatory Know Your Customer (KYC) process. According to the firm, distributions will be made in euros, and Backpack emphasized that only FTX EU-specific claims will be honored.

Backpack outlined a fee structure for withdrawals:

• Claims under $2,158: incur a flat fee of $5.39

• Claims over $2,158: subject to a 0.25% fee

The firm also clarified that users must use the same email associated with their original FTX EU accounts, and once KYC is completed, users will receive a repayment schedule via email.

Important Limitations and Legal Tension

Backpack will not handle claims from FTX International or FTX US. Users with pending withdrawals as of November 11, 2022, are instructed to pursue their claims through the FTX Recovery Trust, which Backpack is not affiliated with.

Furthermore, anyone who registered with FTX before March 7, 2022, is not recognized as an FTX EU customer, according to Backpack. Those users are advised to seek recourse through FTX International. Backpack’s repayment plan has not been without controversy. The FTX estate has publicly criticized the move, arguing that Backpack is not authorized to return funds, as it wasn’t involved in the bankruptcy court’s approval process. Legal experts suggest this dispute could raise compliance concerns or trigger regulatory intervention.

Backpack Aims to Restore Confidence

Despite the criticism, Backpack Exchange is pushing forward, positioning itself as a firm that honors customer losses where legally permissible. The launch of the Backpack EU brand, a localized platform for European customers, signals its ambitions to build trust and reclaim some of the reputational damage inflicted by the FTX scandal. As the process unfolds, the crypto community will be watching closely to see how effective, legal, and smooth the fund recovery turns out for the thousands of EU-based victims.