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Backpack Unveils Innovative Debt Claims Portal for FTX Creditors
Backpack, a prominent cryptocurrency exchange established by former FTX insiders, has introduced a pioneering marketplace designed to streamline the sale of FTX debt claims. The new portal allows FTX creditors to directly connect with institutional buyers, providing a vital liquidity option for those impacted by the infamous 2022 collapse of FTX.
Backpack announced the platform launch on July 18 through its official Chinese X account, framing the initiative as a “non-profit, neutral” service created to support the global crypto community devastated by the FTX bankruptcy. The exchange emphasized its commitment to transparency and neutrality, assuring customers that the service will operate without any fees or profit.
A Seamless, Secure, and User-Friendly Process
The FTX debt marketplace delivers an integrated, step-by-step experience for creditors. Within the Backpack interface, users can:
- Complete robust Know Your Customer (KYC) identity verification
- Validate and submit their debt claim documentation
- Receive and review offers from third-party buyers
- Finalize and settle transactions efficiently and securely
The platform is strategically crafted to give users an accelerated route to liquidity, especially for those still awaiting compensation nearly three years after FTX’s dramatic downfall.
Targeting Restricted Regions and Overcoming Legal Hurdles
Backpack’s new portal is especially impactful for FTX users in restricted regions such as China and Russia. According to industry data, these markets account for approximately $470 million in outstanding FTX claims, with Chinese claimants making up about $380 million of the total. Many affected users have faced significant challenges, either due to delayed or denied claims in the official FTX bankruptcy proceedings.
By bridging claim holders with verified institutional crypto investors, Backpack aims to empower users who might otherwise be excluded from the bankruptcy recovery process. This service can be crucial for international cryptocurrency communities who have struggled to access FTX’s official payout channels.
Transparency, Risks, and the Importance of Informed Choices
Backpack urges claimants to carefully evaluate their financial decisions. The platform stresses that selling debt claims is voluntary and not always the best choice; holding out for official bankruptcy payouts could potentially yield higher future returns—but carries its own risks and time delays. As a result, Backpack encourages users to weigh opportunity costs and make choices based on their individual financial goals.
Backpack: From FTX Fallout to Crypto Exchange Leadership
The founders of Backpack, including ex-Alameda Research engineer Armani Ferrante and former FTX general counsel Can Sun, have a unique connection to FTX. When FTX collapsed in November 2022, Backpack lost nearly 88% of its operating capital—around $14.5 million. In response, Backpack prioritized transparency by implementing daily proof-of-reserves disclosures and upgrading security infrastructure across all its crypto trading products.
FTX EU Acquisition and Regulatory Disputes
In January 2025, Backpack made headlines by acquiring FTX EU for $32.7 million, obtaining its MiFID II license and assuming responsibility for €53 million in verified creditor repayments. The acquisition, however, has sparked debate. The FTX bankruptcy estate questions the legality of this deal, arguing that FTX EU’s assets were improperly transferred and voicing concerns that Backpack’s repayment plan may not be legally enforceable.
Despite ongoing legal disputes, Backpack asserts that the EU acquisition was greenlit by Cyprus regulators and remains separate from the primary FTX bankruptcy estate. From April 2025, Backpack began verifying user identities and processing withdrawals for eligible EU creditors, reinforcing its mission to restore trust and deliver practical solutions in the cryptocurrency industry.
Source: crypto
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