Backpack Begins FTX EU Funds Return, Fees Apply

Coin WorldMonday, May 12, 2025 7:06 am ET
1min read

Backpack has initiated the process of returning funds to former FTX EU customers, marking a significant development in the aftermath of the exchange's collapse. The withdrawal window for affected users opened on May 12, following Backpack’s acquisition of FTX’s European arm in January 2025. This move is part of a broader effort to restore access to frozen assets for users impacted by the FTX debacle.

The claims process involves a two-step procedure. Customers must first select the “FTX EU Withdrawal Request” on the exchange’s EU platform. They are then required to complete a form with their bank details and upload a bank statement dated within the past three months. This statement must clearly display the customer's full name, IBAN, and registered address, all of which must match the information provided on the request form. The exchange has emphasized that withdrawal fees will apply, with the fees set by its banking partners and varying depending on the amount claimed. For transactions up to €2,000, the charge is €8. Claims between €2,001 and €50,000 incur a flat fee of €13. For larger withdrawals, the platform charges €13 plus 0.1% of any amount exceeding €50,001, with the total fee capped at €353. Backpack has assured that it does not add any extra fees on top of those set by its banking partners.

While the process is underway, Backpack has warned of possible delays due to high traffic and banking limits, especially during the early days of processing. The exchange has also noted that while there is no fixed deadline to file a claim, any unclaimed funds will eventually be treated under relevant financial laws. This initiative follows the platform’s earlier launch of its identity verification process in April, which marked the first step in helping former FTX EU users regain access to their frozen assets. However, it is important to note that all claimable funds are denominated strictly in euros, and crypto withdrawals are not supported at this time.

This development is a crucial step in the ongoing efforts to address the fallout from the FTX collapse. By providing a structured process for former FTX EU customers to reclaim their funds, Backpack is taking a proactive approach to mitigating the financial impact on affected users. The initiative underscores the importance of transparency and accountability in the cryptocurrency industry, as well as the need for robust mechanisms to protect user assets in the event of exchange failures. As the process continues, it will be essential for Backpack to maintain clear communication with users and address any challenges that arise to ensure a smooth and efficient return of funds.