Backpack Exchange has initiated a fund return procedure for former FTX EU clients to speed up the recovery process.
FTX Collapse and Its Aftermath
FTX, once one of the largest cryptocurrency exchanges, collapsed in November 2022 amid a liquidity crisis and fraud allegations. Alameda Research, closely related to FTX, invested billions in dubious investments, leading to the collapse. FTX founder Sam Bankman-Fried was charged and convicted of fraud and conspiracy. The European subsidiary FTX EU was also impacted, despite stricter oversight. In January 2025, FTX EU was acquired by Backpack Exchange, facilitating the fund return process to clients.
Backpack Exchange's Fund Return Process
Backpack Exchange has created a verification process for returning funds to affected FTX EU clients. This process starts with identity verification, accessible via Backpack's claims page. After successful verification, clients can withdraw their assets. Backpack Exchange CEO Armani Ferrante stated that fund restitution is crucial for rebuilding trust.
Community Reaction to the New Initiative
The community has reacted with mixed feelings to the asset return news. Social media responses range from optimism to skepticism, with users expressing hopes for a quick resolution. The fund return process is viewed as an important step in restoring trust with FTX EU clients.
The return of funds to FTX EU clients is widely seen as a crucial step in rebuilding trust in cryptocurrency platforms, highlighting the need for stringent oversight and protections for users.
