Can Backpack Solve FTX Claims Payout Issues for Global Users?

As the fallout from the collapse of the FTX exchange continues, some platforms are stepping in to ease the burden.

Backpack, a wallet and exchange infrastructure provider, announced a non-profit FTX claims sale channel, offering users a fee-free way to sell their claims directly on-platform.

Backpack’s Claims Platform Offers Relief—but Not Without Questions

The move comes amid rising frustration from creditors, especially in Asia, where access to compensation has been uneven.

Against this backdrop, this new initiative is gaining attention across the crypto community. Backpack’s new FTX claims sale feature allows users to complete their claims directly on the platform.

The exchange confirmed that it will not charge fees and aims to connect FTX claim holders with third-party buyers. Nevertheless, the platform’s decision appears rooted in shared experience.

“At the end of 2022, FTX’s bankruptcy had a significant impact on the industry, causing considerable harm to Backpack as well. Having lost $14.5 million on FTX, we deeply understand the pain of being former FTX users,” the team wrote on its official X account.

To that end, Backpack offers a channel where users globally can offload their FTX claims. The launch could garner particular interest in China, where 82% of the 49 countries earmarked for account freezing reside.

Analyst AB Kuai Dong explained the mechanics, indicating that after users synchronize their FTX account on Backpack, they will receive an evaluation offer and then sign a transfer agreement.

“Approximately 24 hours after the agreement is signed, users will receive the corresponding USDC payout,” the analyst explained.

However, the evaluation offer and payout stages may require a longer wait time for large-amount users. Meanwhile, smaller users with claims below $10,000 could experience faster processing.

China’s FTX Creditors in Focus as Legal Restrictions Spark Frustration

As BeInCrypto reported, FTX filed a motion in US bankruptcy court to freeze creditor payouts in 49 countries with restrictive crypto regulations.

“Today, certain creditors of the FTX Recovery Trust reside in jurisdictions that continue to have laws and regulations that restrict cryptocurrency transactions. The collection of potentially applicable non-US laws and regulations is daunting…[If] a Holder of a Claim (whether Disputed or Allowed) is determined by the FTX Recovery Trust to be a resident of a Restricted Foreign Jurisdiction, then the applicable Distribution and associated interest shall be forfeited,” FTX stated.

The move triggered strong objections from Chinese creditors, who argued they can legally receive USD offshore. That vacuum is exactly where Backpack sees opportunity and obligation.

The move also comes as pressure mounts on the FTX estate. In June, the company stoked outrage by proposing to forfeit claims from international users if not filed through US-based bankruptcy channels.

“FTX previously did not allow users in China to file claims, but Backpack has introduced a debt transfer method to help everyone withdraw their FTX funds,” one Chinese user commented on X.

At the same time, reports emerged that FTX had unstaked $315 million worth of Solana (SOL), assets many users believe could go toward improving creditor recovery rates.

Backpack positions itself as a facilitator and bridge by offering a channel to cash out FTX claims, particularly for underserved global users still reeling from one of crypto’s biggest collapses.

However, some users remain skeptical, with many waiting for the market to test Backpack’s system.

“The direction is right, now we just wait for the market to test it,” one user remarked.

More skepticism also stems from ties between the Backpack founding team and the FTX exchange.