Backpack Exchange began allowing former FTX EU customers to reclaim their frozen euro balances. The platform posted on X(Twitter) that users can now complete a two-step process to withdraw their funds.
This move brings a clear path for members to regain assets tied up since FTX’s collapse, marking a key step in resolving one of the largest crypto bankruptcies in recent years.
Withdrawal Process Goes Live
Backpack EU’s announcement means that affected users no longer have to wait for court rulings or complex trustee procedures. First, each user must verify their identity through Backpack’s secure portal.
Once verification is confirmed, customers can request transfers of their euro holdings back to linked bank accounts. By structuring the process in two simple stages, Backpack aims to reduce confusion and deliver funds with transparency.
Court Battle Over FTX Promotions
In parallel, investors in FTX filed a lawsuit against celebrity endorsers, including athletes Tom Brady, Stephen Curry and Shohei Ohtani. A federal judge recently narrowed the claims but allowed the case to continue.
Plaintiffs allege that these stars ignored warning signs and hid large payments received for promoting FTX. They argue that the ambassadors joined forces with Sam Bankman-Fried’s exchange in a civil conspiracy to lure customers into a failing platform.
FTX Bankruptcy and Repayment Plan
FTX filed for bankruptcy protection in November 2022 after a sudden liquidity shortfall shook global markets. Bankman-Fried was later convicted of fraud and sentenced to 25 years in prison, a ruling he is now appealing.
Last October, the bankrupt exchange secured court approval for a restructuring plan that promises full repayment to users once assets are liquidated. Backpack’s move to return frozen fiat fits within this broader effort to honour creditor claims and restore trust in the ecosystem.
Lessons for a New Exchange
Backpack CEO Armani Ferrante has stressed the need for robust risk management in crypto trading venues. While speaking about industry best practices, Ferrante has pointed to the FTX and Alameda collapse as a stark reminder of what can go wrong.
He emphasises that clear protocols, real-time audits and open communication with users are vital to avoid the same failures under his exchange’s roof.
What This Means?
For former FTX EU clients, Backpack’s withdrawal window offers relief after years of uncertainty. It also signals that the crypto sector can self-heal by transferring assets through compliant channels rather than prolonged court battles.
More broadly, the step underscores the growing maturity of Europe’s digital asset regulations and the readiness of new players to build on past lessons.
As Backpack EU expedites withdrawals, the spotlight will remain on FTX’s legal aftermath and the celebrity lawsuit. The industry will watch how quickly funds reach users and whether any glitches arise in identity checks or bank transfers.
Also Read: Netflix Set to Produce a $32 Million Movie Focused on the Rise and Fall of FTX Crypto Exchange