Backpack has launched a fee-free channel for FTX creditors to sell their bankruptcy claims, targeting individuals in restricted jurisdictions like China. This initiative promises fair market valuations and instant USDC payouts, with expedited processing for claims under $10,000.
FTX’s collapse created complex legal hurdles, freezing creditor payouts across 49 countries due to regulatory conflicts. Creditors in China and other affected regions have faced prolonged uncertainty and frustration amid unresolved distribution challenges.
Market skepticism persists around Backpack’s ability to deliver its pledged services, partly fueled by perceived connections to FTX. Many creditors maintain a cautious ‘wait and see’ stance until real-world results validate the platform’s claims processing efficiency.
If successful, the program could stabilize trading for FTX-related assets and set a new benchmark for user-centric resolutions in crypto bankruptcies.
The service offers a critical lifeline for creditors in high-restriction jurisdictions, navigating regulatory barriers through direct USDC settlements despite global legal complexities.