Backpack Launches Fee-Free Platform to Help FTX Creditors Sell Claims

Crypto exchange Backpack has launched a new fee-free platform to help creditors of the now-defunct FTX sell their debt claims. The platform operates on a non-profit basis for victims to connect safely and directly with third-party buyers. The service is designed to alleviate the burden on users affected by the 2022 closure of the defunct crypto exchange, particularly those in restricted regions such as China and Russia. A Platform Built for FTX Victims On July 18, 2025, Backpack announced the official launch of a claims sale channel through its Chinese X account. The platform is described as a non-profit, completely neutral tool designed to support former FTX users. The platform aims to simplify the process of claim transfers. The company cited its own $14.5 million loss in the 2022 FTX collapse as a reason for launching the service. Users can complete all steps, from identity verification to pricing and settlement, in a single location. As confirmed by the exchange, no fees will be charged for using the service. Backpack Offers Fast Payouts for FTX Creditors in Restricted Countries The process is simple and user-friendly. As explained by analyst AB Kuai Dong, users need to link their FTX accounts to Backpack and receive a claim valuation. If they accept the offer, they sign a transfer agreement. About 24 hours later, they receive their payout in USDC. This platform is especially relevant for users in various countries where FTX creditor payouts are currently restricted. These include China and Russia, which together account for approximately $470 million in frozen claims, with $380 million held by Chinese users alone. Earlier this month, more than 500 Chinese creditors sued the bankrupt crypto exchange in a U.S. court. This group is challenging FTX’s recent decision to delay payouts to users in 49 jurisdictions. Backpack Rebuilds After FTX Collapse Backpack’s connection to FTX runs deep. The platform lost 88% of its funds in the collapse, a total of $14.5 million. The exchange was founded by Armani Ferrante, a former engineer at Alameda Research, and Can Sun, a retired general counsel at FTX. These links position Backpack uniquely to understand and address the challenges faced by former FTX users. Since the FTX crisis, Backpack has worked to rebuild trust, transparency, and user safety. The exchange now provides daily proof-of-reserves and has tightened its internal controls. In January 2025, Backpack acquired FTX EU for $32.7 million. Through this deal, the exchange secured a MiFID II license, which allows it to operate in Europe and take responsibility for €53 million in creditor repayments . However, this acquisition raised concerns. The FTX bankruptcy estate questioned whether Backpack had acquired the assets legally and whether its repayment plan could be enforced. Backpack responded by stating that regulators in Cyprus had approved the deal and that it was not part of the U.S. bankruptcy proceedings. With this approval, Backpack has moved forward with verifying EU users and enabling withdrawals for eligible creditors. The post Backpack Launches Fee-Free Platform to Help FTX Creditors Sell Claims appeared first on TheCoinrise.com .

Source: The Coin Rise