Backpack Exchange has launched a non-profit marketplace enabling FTX creditors to sell bankruptcy claims directly to third-party buyers without fees. The platform targets users in 49 restricted jurisdictions—notably China, which holds $380M of the $470M in frozen claims—where FTX's bankruptcy estate has blocked payouts due to regulatory concerns.
The service offers a streamlined process: After identity verification and claim validation on Backpack, users receive evaluation offers and sign transfer agreements. Settlements are paid in USDC, with sub-$10,000 claims processed within 24 hours, though larger claims face delays. Backpack emphasized neutrality, charging no fees and profiting nothing from transactions.
Motivation stems from Backpack's own $14.5M loss in FTX's 2022 collapse. As stated on their official account: "We deeply understand the pain of being former FTX users." The launch follows FTX's controversial motion to forfeit claims from restricted regions unless filed via U.S. channels—sparking outrage among Chinese creditors who argue they can legally receive offshore USD.
Skepticism persists due to Backpack's ties to FTX; co-founders include former Alameda Research engineer Armani Ferrante and FTX ex-general counsel Can Sun. Additional scrutiny surrounds Backpack's $32.7M acquisition of FTX EU, which the FTX estate disputes as potentially illegal. Despite this, Backpack maintains regulatory approval from Cyprus and has processed €53M in EU creditor repayments since May.