Backpack Launches FTX Debt Marketplace: A Lifeline for Creditors?

by

Backpack launches FTX debt marketplace for claim holders

A startup called Backpack, established by ex-insiders of the cryptocurrency exchange FTX, has unveiled a fresh platform for facilitating the sale of debt claims from FTX creditors to potential external investors.

On July 18th, it was announced through a post on Backpack’s Chinese social media account (X) that they were launching a charitable, impartial service to aid the broader cryptocurrency community affected by the 2022 FTX crisis.

On the fresh system, claimants benefit from a streamlined, single-step procedure encompassing identity authentication, claim verification, offer approval, and final payout – all managed seamlessly within the user-friendly Backpack system. Remarkably, Backpack assures that no fees will be imposed, and they won’t generate any profits through this service.

Backpack 正式开放 FTX 债权出售通道…

— Backpack中文 (@Backpack_CN) July 18, 2025

The aim is to provide a more seamless route for FTX users, who have yet to receive compensation following the exchange’s bankruptcy filing, with a faster solution almost three years later.

The portal holds considerable importance for FTX users residing in countries with limitations, particularly China and Russia. In total, these users have approximately $470 million worth of claims, with a staggering $380 million coming from Chinese users.

The progress in recovery has been hindered due to some claims being delayed or omitted entirely from FTX’s formal bankruptcy process. In an effort to address this issue, the Backpack platform aims to connect these verified institutional buyers directly with claim holders, thereby filling the void created by these delays and exclusions.

Users are advised to thoughtfully evaluate the potential benefits at hand. As Backpack explains, those who choose to forgo immediate distribution of estates could potentially receive larger payouts in the future if they refrain from selling debt claims. The company underscores that participation is entirely up to each individual and should be based on their own financial wisdom.

As a crypto investor, I’ve closely followed the journey of Backpack, a venture that shares deep roots with FTX. Sadly, when FTX faced its downfall in November 2022, my investment in Backpack, founded by ex-Alameda Research engineer Armani Ferrante and former FTX general counsel Can Sun, took a significant hit, losing around $14.5 million, which equates to about 88% of its operational funds.

Ever since that point, the team has made a conscious effort to promote transparency. They’ve implemented regular daily updates on reserve verifications and strengthened the security systems for all their offerings significantly.

In the month of January 2025, Backpack Corporation took over FTX EU at a price of $32.7 million, thereby obtaining control of its MiFID II license and assuming duties related to processing €53 million in approved creditor refunds. This acquisition has sparked some debate.

The legal validity of the deal is being challenged by the FTX bankruptcy estate, who claim that the transfer of assets from FTX EU was inappropriate. They also caution that the repayment plan proposed by Backpack may not hold up legally.

As a researcher, I’m sharing information about Backpack, a company that assures its acquisition was duly approved by Cyprus regulators, thus maintaining an independent status from the primary FTX bankruptcy proceedings. In the month of April, they started verifying user identities, and by May, eligible European creditors were initiated with withdrawal processes.

Read More

2025-07-18 10:12