Backpack Exchange has acquired FTX EU, the former European arm of FTX. With the acquisition, Backpack’s new EU arm will offer a full suite of crypto derivatives throughout the European Union including perpetual futures.
As part of the acquisition, Backpack EU will undertake responsibility for distributing the previously court-approved FTX bankruptcy claims to FTX EU customers.
In addition to compliant product offerings, Backpack EU will provide seamless integration with traditional payment rails including instant, low-cost Single Euro Payments Area (SEPA) payments and wire transfers in major currencies across the region.
What is Backpack Exchange?
Backpack Exchange is a regulated global cryptocurrency exchange building an innovative, easy-to-use and compliant trading platform. Backpack currently serves users from more than 150 countries and regions with more than $60 billion in trading volume.
Backpack is on a mission to empower traders with advanced tools, a seamless trading experience, and flexible risk management options—all within a unified trading account framework. To learn more about the platform and vision, visit Backpack Exchange.
Backpack Exchange is a part of the Backpack family of products, including Backpack Wallet (self-custodial crypto wallet), and Mad Lads, the leading NFT project on Solana.
Why is this good news for FTX EU Creditors?
1. Why is this good news?
Backpack’s acquisition of FTX EU Ltd. is the ONLY way for FTX EU users to get their money back as quickly as possible.
- Before the acquisition, NO ONE knew HOW or WHEN the license of FTX EU Ltd. would be reactivated and how and when the refunds would start.
- Now, there is an entity (Backpack) responsible for both:
- Reactivating the license of FTX EU and
- Executing the refunds.
- Both things are expected to happen in 2025Q1.
2. Who are the FTX EU Creditors?
The users that signed up to FTX on or after March 7, 2022, are FTX EU Ltd. customers and should make their claim with FTX EU.
The users that signed up to FTX prior to March 7, 2022, are NOT FTX EU Ltd. customers and should make their claim with FTX International.
Important Note:
Even if you are a FTX EU customer, you may also have claims against FTX International
- If you had pending cryptocurrency withdrawals or NFTs on FTX on November 11, 2022, the value of those remains a claim against FTX International. You may be able to claim this balance via the FTX International’s approved process.
- If you had Euro account balances, pending Euro withdrawals or open derivative positions on November 11, 2022, (note that derivative positions were all automatically closed on November 11, 2022 by FTX EU and settled in Euro), your claim is and has always been with FTX EU Ltd.
How to Claim FTX Balance
For FTX EU Ltd. customers (signed to FTX on or after March 7, 2022)
-
Account Balances and Pending Euro Withdrawals
- Liable entity: FTX EU Ltd.
- Claim portal: ftxeurope.eu
- Distribution provider: Backpack at eu.backpack.exchange/claim (coming soon)
- Pending Crypto Withdrawals and NFTs
- Liable entity: FTX International (FTX Trading Ltd., FTX Digital Markets Ltd., etc.)
- Claim portal: claims.ftx.com/welcome
- Distribution providers: Kraken/BitGo/… at their respective sites
3. What is the role of Backpack?
Backpack is responsible for the refund of any outstanding Euro balances and pending Euro withdrawals to FTX EU Ltd. customers.
Kraken/BitGo (and any other distribution provider designated by FTX International) are responsible for the refunds of funds under the scope of the FTX bankruptcy proceedings, which no longer includes the Euro balances of users at FTX EU Ltd.
Important Note:
FTX International and Kraken/BitGo do NOT and will not pay their Euro balances to FTX EU Ltd. users. This was never an option in the first place.
Why was this never an option?
- In March 2024, FTX EU Ltd. was removed from the bankruptcy proceedings after the bankruptcy court approved the sale of FTX EU Ltd. by FTX after intense litigations initiated by FTX against FTX EU’s founders.
- This means that the FTX bankruptcy trustee no longer has any obligations regarding the Euro balances of the customers of FTX EU Ltd.
The non-existent “dispute”’ of FTX vs. Backpack
Backpack doesn’t actually think that there’s any “dispute” so to speak, as many other news outlets have sensationalized their press release.
Backpack actually agrees 100% with what FTX said in their press release. For instance:
- Backpack is not part of the FTX bankruptcy process.
- FTX is not responsible for repayment of any funds owed by FTX EU.
- Backpack EU will be solely responsible for any repayment to FTX EU customers.
The misconception that there is a “dispute” arises because FTX’s statements were drafted in a way suggesting that FTX did not approve of the deal.
Facts
- FTX originally bought a EU entity and renamed it as FTX EU Ltd.
- FTX EU Ltd. was sold back to its founding team in February 2024
- The founders of FTX EU Ltd. sold the company to Backpack in summer 2024.
- CySEC has now approved that operation after many months of due diligence
FTX’s statement rightly says “I did not approve this deal” but not because they don’t like it, or don’t want it to happen, or want to somehow stop it. But because FTX EU Ltd. is now owned by Patrick Gruhn & Robin Matzke (the founders of Digital Assets AG, the European company that was originally bought by FTX, and that was then sold back to the founders in early 2024)
That’s why the FTX statement can be confusing.
