- Backpack offers a zero-fee marketplace to simplify distressed FTX claims sales.
- It targets global users, easing access to capital despite regional restrictions.
- Acquisition of FTX EU boosts Backpack’s legal access and regulatory credibility.
Backpack has introduced a zero-fee FTX claims marketplace, allowing individuals to sell FTX bankruptcy claims on its site. This new program consists of KYC, claim validation, offer confirmation, and final settlement within an integrated process. Backpack intends to simplify the claims resolution process and provide a user-friendly exit to those who have FTX claims in distress.
A Strategic Move into Claims Infrastructure
In addition to offering exchange and wallet services, Backpack introduces a trade channel on FTX claims. The firm has introduced a one-stop portal where claim holders do their identity verification and also authenticate their FTX claims without any hassle. Once validated, the users accept offers from third-party buyers and are paid directly without platform commissions.
Backpack does not charge any fees, aligning the company to act as a facilitator rather than a profit-making intermediary. This action distinguishes the platform in a market that is mostly characterized by exploitative buyers and invisible commissions. It also provides structure to an area where there is uncertainty and delays from many creditors.
The company structured the channel to serve users globally, especially those in restricted regions like China and Russia. Users in these jurisdictions hold an estimated $470 million in FTX claims, with $380 million attributed to Chinese creditors. Backpack offers these users a path to liquidity while bypassing obstacles in the official FTX bankruptcy proceedings.
Restoring Confidence Post-FTX Collapse
Backpack’s launch follows a personal financial blow it suffered during FTX’s collapse, losing $14.5 million in the 2022 bankruptcy. The firm has since strengthened security, implemented daily proof-of-reserves, and embraced transparency to rebuild trust.
The use of the marketplace enables users to escape long waiting hours and gain direct access to capital. Backpack cautions that disposing of FTX claims can be associated with opportunity costs in case future estate distributions are increased. Users are encouraged to assess their financial needs before deciding to participate.
Almost three years after FTX was declared bankrupt, the initiative led by Backpack introduces clarity to the previously unclear claims market. It serves the institutional demand of discounted FTX claims and provides users with a free exit avenue. This strategy would reestablish expectations of post-collapse assistance throughout the crypto community.
Related: FTX Bankruptcy May Exclude Users in 49 Regions, Most Claims from China
Legal and Regulatory Implications
In January 2025, Backpack acquired FTX EU for $32.7 million, obtaining a MiFID II license and access to approved claims. The agreement comes with the obligation to handle the repayment of creditor claims of over 53 million euros, but the FTX bankruptcy estate has also challenged it. The representatives of the U.S. estates have acted against the transfer of the assets, arguing that it was not done properly, and have filed a legal challenge.
Nonetheless, Backpack explains that regulators in Cyprus approved the acquisition and that it operates separately from the primary FTX process. Backpack confirmed the identity and initiation of withdrawals by EU creditors since May. These measures demonstrate its commitment to honoring regulatory requirements and enhancing users’ access to funds.
Backpack’s new marketplace is indicative of a broader shift toward stabilizing the crypto sector following its numerous insolvencies. It facilitates the smooth operationalization of FTX claims with expectations of what platforms should be responsible for. This relocation not only increases Backpack usage but also enhances its position in crypto infrastructure.
