Backpack Exchange has officially launched a withdrawal process for former FTX EU users, starting May 12, 2025. This development marks a significant milestone for thousands of individuals who have been awaiting access to their funds since the collapse of FTX nearly three years ago. The process is designed to be straightforward but requires users to complete specific steps to successfully claim their euro-denominated balances.
How to Withdraw Your Funds from FTX EU via Backpack
The withdrawal procedure involves two primary steps: identity verification and fund withdrawal. Users must complete a Know Your Customer (KYC) process using their original FTX EU registration details. After successful verification, the available euro balance will be displayed on the user’s dashboard. From there, users can initiate a withdrawal to their linked bank account.
It is crucial to note that the deadline for completing the KYC verification has been extended to June 1, 2025. Failure to meet this deadline may result in the forfeiture of claims, as seen in previous instances where hundreds of thousands of users missed earlier deadlines.
Understanding withdrawal fees
Backpack Exchange applies a tiered fee structure for withdrawals:
- Withdrawals under €2,000 incur an €8 fee.
- Larger amounts are subject to a variable fee, with a maximum charge of €353.
Users are advised to review the fee schedule carefully before initiating transactions to avoid unexpected costs.
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Background and Legal Context
The launch of withdrawals occurs amidst ongoing legal and financial developments related to the FTX bankruptcy. On May 8, 2025, a US District Judge dismissed most lawsuits against celebrities accused of promoting FTX without disclosing compensation. While high-profile names like Tom Brady and Stephen Curry were involved, only two of the fourteen initial claims proceeded.
Attorney Adam Moskowitz referred to the outcome as a "partial victory" and indicated plans to expand the defendant list to include entities like Major League Baseball and Formula 1 Racing. This suggests that the legal ramifications of the FTX collapse are far from over.
Creditor payments and restructuring efforts
FTX has announced that creditor payments will commence on May 30, 2025. The estate has accumulated approximately $11.4 billion in cash for distribution. Institutional investors and large entities are prioritized, but individual creditors with claims under $50,000 have already begun receiving payments.
This distribution is part of a broader restructuring plan approved by US Bankruptcy Judge John Dorsey on January 3, 2025. The plan, valued at over $14 billion, promises full repayment to non-government creditors—a rare achievement in bankruptcy cases.
Regulatory Hurdles and Operational Limitations
Backpack EU continues to operate under a suspended license from Cypriot authorities until at least May 30, 2025. During this period, the platform cannot accept new users or offer services beyond facilitating claim settlements. This regulatory constraint highlights the complexities involved in resolving the FTX aftermath while complying with financial regulations.
Despite these challenges, the ability to withdraw funds represents a positive step forward for affected users. However, the process remains subject to regulatory approvals and operational limitations.
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Frequently Asked Questions
How do I start the withdrawal process for my FTX EU funds?
Begin by visiting the designated Backpack Exchange portal and completing the KYC verification using your original FTX EU details. After verification, your euro balance will be visible, and you can proceed with the withdrawal.
What is the deadline for completing KYC verification?
The deadline for KYC verification is June 1, 2025. Users who miss this deadline risk losing their claims, as seen in previous cases where claims were disqualified due to missed deadlines.
Are there fees associated with withdrawing funds?
Yes, Backpack charges a withdrawal fee based on the amount. Withdrawals under €2,000 incur an €8 fee, while larger amounts have a variable fee structure, capped at €353.
When will creditor payments begin?
FTX creditor payments are scheduled to start on May 30, 2025. The estate has allocated approximately $11.4 billion for distribution, with priority given to institutional investors and large entities.
Can I open a new account with Backpack EU?
No, Backpack EU’s license is suspended until at least May 30, 2025. During this time, the platform cannot accept new users or offer services beyond claim settlements.
What legal developments have occurred recently?
Most lawsuits against celebrities promoting FTX were dismissed on May 8, 2025. However, legal proceedings continue, with plans to expand the list of defendants to include major organizations.