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Backpack begins identity verification to repay FTX EU claimants

by Catatonic Times
April 1, 2025
in Crypto Exchanges
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Crypto trade Backpack has formally launched the claims course of for customers of the now-defunct FTX EU platform, in keeping with an April 1 assertion.

BackPack CEO Armani Ferrante mentioned:

“It’s been a protracted, difficult course of with a number of events, however we’re pleased to lastly open up identification verification for FTX EU clients on [our website.]”

In keeping with BackPack’s web site, claimants should full KYC (Know Your Buyer) verification utilizing the identical e mail handle they used on FTX EU. This requirement goals to substantiate the legitimacy of every declare and stop fraudulent requests.

In the meantime, the second step, which entails fund withdrawals, has but to be introduced. Backpack acknowledged that additional directions would observe quickly.

Ferrante added:

“Returning funds as shortly and safely as attainable is our primary precedence, and we’re right here to reply any questions alongside the way in which.”

FTX ties with BackPack

This growth offers some respite for the European customers of the failed trade.

Backpack’s involvement with FTX EU started in January 2025 when a chapter court docket accepted its request to accumulate the entity.

The acquisition additionally granted Backpack entry to the MiFID II license held by FTX EU underneath the Cyprus Securities and Alternate Fee (CySEC). This regulatory approval permits Backpack to supply compliant crypto derivatives, together with perpetual futures, throughout the European Union.

Backpack agreed to handle the claims and reimbursements owed to FTX EU clients as a part of the acquisition deal.

On the time, Ferrante emphasised that the corporate’s accountability was to revive person funds, important to rebuilding belief within the digital asset business.

FTX reimbursement efforts

This growth comes because the broader FTX property prepares for its first spherical of huge creditor repayments.

The bankrupt trade plans to disburse claims over $50,000 by Might 30, greater than two years after its collapse in November 2022.

FTX has acknowledged that almost all claimants will get well 118% of their money owed based mostly on values from the chapter submitting date.

Nevertheless, some collectors argue that the determine doesn’t replicate the rise in crypto costs since then.

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