Backpack Launches FTX Debt Marketplace for Creditors to Sell Claims to Third-Party Buyers

Backpack Exchange has launched a non-profit claims sale channel enabling FTX creditors to sell their bankruptcy claims to third-party buyers, offering an alternative to waiting for the official distribution process that has already returned $6.2 billion across two major payment rounds.

The platform offers a complete one-stop process, encompassing identity verification, claims validation, offer confirmation, and settlement payment, all without charging any fees.

Backpack stated that it will not profit from the service, and the marketplace will just be a means of assistance to the crypto community following its own $14.5 million loss on FTX.

Restricted Jurisdiction Claims Create Market Uncertainty

The launch comes as FTX creditors face uncertainty over claims in 49 restricted jurisdictions, with Chinese users accounting for 82% of the disputed $800 million total value.

The FTX Recovery Trust is seeking court approval to treat these claims as disputed until legal opinions determine the feasibility of distribution.

Backpack warned that selling claims involves opportunity costs, noting that creditors who continue holding may receive higher compensation in future distributions.

This comes after the exchange has acquired FTX EU and plans to oversee fund distribution to European customers under the Backpack EU brand, launching in Q1 2025.

The marketplace addresses growing secondary market demand as FTX creditors seek immediate liquidity rather than waiting for future distributions that could extend through 2025.

Current distribution rates range from 54% to 120% depending on claim categories, with convenience claims under $50,000 receiving full reimbursement plus 9% annual interest.

FTX Recovery Progress Faces Geographic Distribution Challenges

FTX has distributed $6.2 billion across two major payment rounds since beginning repayments in February 2025.

The first distribution totaled $1.2 billion for convenience class creditors with claims under $50,000, while the second distribution, which reached $5 billion, was made for larger claimants in May.

Dotcom Customer Entitlement Claims received 72% distributions, while US Customer Entitlement Claims received 54% payouts.

General Unsecured Claims and Digital Asset Loan Claims both received 61% distributions, with convenience claims receiving a full 120% reimbursement, including interest.

The Recovery Trust now seeks to dispute claims from 49 restricted jurisdictions, including China, Russia, Iran, North Korea, and 45 other nations where local laws prohibit crypto trading or where FTX lacked proper licensing.

Affected creditors receive a 45-day notice period to object to their jurisdiction’s restricted status.

Chinese creditors are mobilizing legal challenges, arguing that mainland China recognizes the commodity attributes of cryptocurrency and permits residents to hold digital assets.

One creditor stated that while China doesn’t support crypto trading, USD settlements should be legally permissible for overseas holdings.

Weiwei Ji, representing over 300 Chinese creditors, filed objections claiming $15 million across four KYC-verified accounts.

Ji argued that China’s inclusion as a restricted jurisdiction “is unsupported by either fact or law,” citing Hong Kong-based distribution mechanisms as precedent.

Backpack’s Strategic Position in FTX Recovery Ecosystem

Backpack’s acquisition of FTX EU, approved by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission, positions the exchange as a key player in the recovery process.

The company will oversee the distribution of funds to FTX EU customers as part of the court-approved bankruptcy claims process.

The acquisition faced ownership disputes, with the FTX estate claiming that share transfers to the original founders, Patrick Gruhn and Robin Matzke, had not been completed.

Backpack maintains that the sale was finalized in June 2024 following regulatory approval from CySEC after rigorous due diligence.

The company emphasized customer restitution as critical to rebuilding industry trust, stating that returning funds quickly and safely remains the primary objective.

Sam Bankman-Fried remains imprisoned until December 2044 after receiving a 25-year sentence for fraud charges.

He was recently transferred to the low-security Federal Correctional Institution Terminal Island in Los Angeles, while accomplices Caroline Ellison and Ryan Salame received prison sentences.

The Justice Department continues seeking the return of $13.25 million in political contributions linked to former FTX executives, with ongoing negotiations involving various political action committees extending through 2025.

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