The cryptocurrency trading firm Backpack, which acquired the European division of the collapsed FTX exchange, has initiated the process for customers to retrieve their funds.
After purchasing FTX EU for $32.7 million in January, Backpack encouraged customers to begin the first step of the know-your-customer (KYC) verification process in an announcement on X on Tuesday.
The second step will involve distributing the funds, although the timing of this is still uncertain. Backpack has noted that this will be “coming later” on its FAQ page.
Backpack’s acquisition of FTX EU faced criticism from the bankruptcy estate of the larger FTX entity.
The estate expressed that Backpack was not part of the U.S. bankruptcy court-sanctioned process for returning funds and did not have the authority to execute any customer distributions.
FTX has amassed $11.4 billion in cash aimed at compensating parties impacted by its 2022 collapse, with payments expected to start at the end of May.