Backpack CEO pledges compensation after trading errors post-maintenance

Crypto exchange Backpack halted trading for scheduled maintenance on July 3 at 10 a.m. UTC and resumed operations two hours later. However, the restart triggered technical errors, including incorrect balances and reversed positions, prompting CEO Armani Ferrante to commit to compensation and a full review.

A Brazilian trader reported a $104,000 withdrawal being returned as 891 SOL, while their margin debt expanded from 31,000 USDT to 111,000 USDT. A Chinese user claimed long positions were flipped to shorts and assets vanished without audit trails.

Ferrante called the issue an “unacceptable programming error” and assured users that funds remain secure thanks to Backpack’s dual-layer MPC wallet system and cold storage. He invited affected users to contact support and promised that all exchange-caused losses would be reimbursed.

To mitigate damage, Backpack's Chinese X account also promised to double points earned by users with active trading positions on July 3, in light of the upcoming native token airdrop.

https://x.com/Backpack/status/1940705953080660436