The long wait is over for former FTX EU customers — Backpack Exchange has officially opened the withdrawal process for affected users, beginning May 12, 2025. This marks a pivotal moment in the aftermath of one of the most significant collapses in crypto history. Thousands of users who lost access to their funds when FTX fell in late 2022 can now take concrete steps toward reclaiming their assets — specifically, their Euro-denominated balances.
For those impacted, this development brings both relief and urgency. While the opportunity to recover funds is real, it comes with clear requirements and deadlines that must be met.
Former FTX EU customers may now complete the two-step process to claim their Euro funds via Backpack EU.
- Get Verified
- Withdraw Funds
Start here: https://t.co/qvUDpbs6oi
How to Claim Your FTX EU Funds Through Backpack
The recovery process is streamlined but strict. Users must follow a two-phase approach:
- Complete KYC Verification
You’ll need to verify your identity using the same personal details you provided when registering with FTX EU. This includes full name, address, date of birth, and any identification documents previously submitted. Backpack has set up a dedicated portal for this purpose, ensuring alignment with regulatory standards and anti-fraud protocols. - Withdraw Eligible Balances
Once verified, your available Euro balance will appear in your Backpack dashboard. From there, you can initiate a withdrawal directly to your linked bank account.
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It's important to note: the KYC deadline has been extended to June 1, 2025, offering a critical grace period for those who missed earlier cutoffs. According to previous reports, over 392,000 claims were disqualified due to missed verification deadlines set on March 3, 2025. If you started the process but didn’t finish, now is the time to complete it.
Understanding Withdrawal Fees and Limits
Backpack has implemented a tiered fee structure for withdrawals, which users should review before initiating transfers:
- Withdrawals under €2,000: €8 flat fee
- Larger amounts: Progressive fees apply, capped at €353 for high-value transactions
While these fees are reasonable by industry standards, they do impact net recovery — especially for smaller balances. Users are encouraged to calculate final amounts before confirming transactions.
Legal and Financial Developments Surrounding FTX
The resumption of withdrawals coincides with broader legal and financial progress in the FTX restructuring saga.
On May 8, 2025, US District Judge K. Michael Moore dismissed most claims in a high-profile lawsuit targeting celebrities accused of promoting FTX without disclosing compensation. While public figures like Tom Brady and Stephen Curry were initially named, only two of the original fourteen allegations remain active.
However, lead attorney Adam Moskowitz described the outcome as a “partial victory” and signaled plans to expand the case — potentially adding organizations such as Major League Baseball and Formula 1 Racing to future filings. The legal landscape remains dynamic, with implications for influencer liability in financial promotions.
Creditor Payouts Begin Soon
FTX has confirmed that creditor distributions will begin on May 30, 2025, with approximately **$11.4 billion in cash** ready for disbursement. Institutional investors and large creditors are prioritized, but individual claimants with balances under $50,000 have already begun receiving partial payments.
This follows the approval of an over $14 billion restructuring plan by US Bankruptcy Judge John Dorsey on January 3, 2025 — a landmark decision in corporate insolvency cases. Remarkably, non-government creditors are expected to receive more than 100% of their claimed value, a rare outcome in bankruptcy proceedings.
Regulatory Status of Backpack EU
Despite these advances, Backpack EU operates under temporary restrictions. Its license remains suspended by Cypriot authorities until at least May 30, 2025. During this period:
- No new user registrations are allowed
- Only FTX EU fund recovery services are active
- Additional trading or deposit features are disabled
This limited operational status ensures compliance while allowing critical claim settlements to proceed.
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Frequently Asked Questions (FAQ)
Can I recover my FTX EU funds if I missed the initial KYC deadline?
Yes — if you began verification before March 3, 2025, you still have time. The deadline to complete KYC has been extended to June 1, 2025. However, no further extensions are guaranteed.
What documents do I need for KYC verification?
You’ll need government-issued ID (passport or national ID), proof of address (utility bill or bank statement), and any information previously used on FTX EU.
Are all currencies available for withdrawal?
Currently, only Euro (EUR) balances are accessible through this recovery process. Other currencies may be addressed in future phases.
Is Backpack Exchange safe and regulated?
Backpack is working under supervision from Cypriot regulators (CySEC). While its license is currently suspended, it was previously authorized to operate in the EU. The fund recovery process is part of a court-mandated obligation.
Will I be charged taxes on recovered funds?
Tax treatment depends on your jurisdiction. In many countries, recovered assets may be considered income or capital gains. Consult a tax professional for personalized advice.
What happens after June 1, 2025?
After the KYC deadline passes, unverified accounts may be permanently disqualified from claiming funds. Timely action is essential.
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Final Thoughts: A Step Forward in Crypto Accountability
The launch of FTX EU fund withdrawals via Backpack Exchange represents more than just financial restitution — it signals growing maturity in the crypto ecosystem’s ability to manage crises, comply with regulations, and restore trust.
For affected users, the path forward is clear: verify your identity, review your balance, understand the fees, and withdraw before the final deadline. Every step brings you closer to reclaiming what was lost.
As the industry continues evolving, events like this underscore the importance of secure custody solutions, transparent governance, and user empowerment.
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