Backpack Exchange has emerged as a prominent player in the centralized cryptocurrency exchange (CEX) space since its 2023 launch. Backed by regulatory compliance, major funding, and a strong track record of user rewards through airdrops, Backpack is now taking another leap forward with its newly launched fiat withdrawal feature—allowing users to seamlessly convert USDC into USD and wire it directly to their bank accounts.
This comprehensive guide walks you through Backpack’s background, regulatory standing, transaction fees, security practices, and step-by-step instructions for using the new fiat withdrawal function. Whether you're a trader, investor, or Web3 enthusiast, this article ensures you’re equipped with everything needed to navigate Backpack efficiently and safely.
What Is Backpack Exchange?
Backpack is a regulated, centralized cryptocurrency exchange developed by Coral, a blockchain company founded by Armani Ferrante. Despite common misconceptions, Backpack operates as a traditional CEX—similar to Binance or Bybit—offering spot and perpetual contract trading rather than being a decentralized or on-chain exchange.
Key Highlights of Backpack
- ✅ Regulatory Compliance: Holds a Dubai Virtual Asset Service Provider (VASP) license and operates legally in 12 U.S. states.
- 💰 **$17 Million in Funding**: Raised in February 2024, bringing its valuation to $120 million.
- 🎁 Over $50 Million in Airdrops: Distributed across four major campaigns as of April 2024.
The platform supports 47 spot trading pairs and 34 perpetual contract assets, including mainstream tokens like BTC, ETH, and USDT, as well as Solana-based and meme coins such as JUP, TRUMP, and WIF.
With consistent growth and user engagement initiatives—including积分 (points) programs that may lead to future token launches—Backpack continues building momentum in the crypto ecosystem.
The Founder: Armani Ferrante’s Journey
Armani Ferrante, Backpack’s founder, graduated from UC Berkeley and began his career at Apple, where he developed popular iOS apps. Inspired by Ethereum’s potential, he transitioned into Web3 development.
In early 2018, Ferrante briefly joined Alameda Research (affiliated with FTX), where he connected with key figures in the crypto space. However, after three months, he left to focus on Ethereum and blockchain innovation.
By 2020, as FTX expanded into Solana, Ferrante shifted focus to Solana’s tech stack and founded Coral, a developer platform tailored for Web3 engineers.
Rising from the FTX Collapse
Coral secured $20 million in funding in 2022 from top-tier investors like FTX Ventures, Jump Crypto, and Multicoin Capital. The funds were intended for developing Backpack Wallet and its proprietary xNFT technology.
Tragically, just six weeks later, FTX collapsed—resulting in Coral losing nearly 90% of its operational capital. Despite this setback, the team remained committed to building within the Solana ecosystem.
👉 Discover how resilient platforms thrive in volatile markets.
Fundraising Success: The Mad Lads NFT Campaign
In April 2023, the team launched Mad Lads NFT, a collection of 10,000 unique digital assets priced at 6.9 SOL (~$150). Crucially, purchases could only be made using Backpack Wallet, driving widespread adoption of the wallet and generating millions in revenue.
This strategic move not only revived the project financially but also boosted visibility across the crypto community.
Launch of Backpack Exchange
In October 2023, Backpack Exchange officially launched after securing regulatory approval from Dubai. The core team includes former FTX legal counsel Can Sun and Claire Zhang—experts dedicated to creating a more transparent and secure trading environment post-FTX fallout.
Backpack quickly gained traction, achieving a $10 billion 24-hour trading volume** despite initially offering only spot trading. In February 2025, it raised an additional **$17 million, reinforcing confidence among institutional investors like Placeholder and Delphi Digital.
✨ Backpack’s New Fiat Withdrawal Feature: Seamless USD Wire Transfers
Backpack has officially rolled out its fiat withdrawal functionality, enabling users to convert USDC into USD and wire funds directly to their bank accounts—such as LINE Bank—with minimal friction.
Why This Matters
This feature addresses one of the biggest pain points in crypto: converting digital assets into usable fiat without high fees or long delays. Backpack’s solution stands out due to:
- ✅ Zero platform withdrawal fees
- ✅ No foreign exchange loss
- ✅ Fast processing: ~2–3 hours (typically same-day settlement)
- ✅ Regulatory-compliant process
Supported Banks & Requirements
Currently supports banks like LINE Bank Taiwan Limited, provided users have a USD foreign currency account.
When initiating the transfer, select the remittance purpose code: "268 – Sale of Overseas Virtual Assets" for compliance.
Step-by-Step Withdrawal Guide
- Log in to your Backpack account → Go to “Withdraw” → Select “Fiat”
- Enter the amount in USDC and choose your recipient bank (e.g., LINE Bank)
- Add your bank details: SWIFT code, account number, bank name
- Review all information → Click “Continue” to submit
- Wait for confirmation—funds typically arrive within 2–3 hours
For more details on LINE Bank’s USD services: LINE Bank USD Account Support
👉 Learn how top traders manage fiat exits efficiently.
Backpack Points Program: A Gateway to Future Rewards
On March 21, 2025, Backpack launched its first Points Program, rewarding active users with Backpack Points based on platform activity—potentially redeemable for a future native token.
How It Works
- Points distributed every Friday at 02:00 UTC
- Calculation based on activity up to Thursday 00:00 UTC
- Dynamic scoring system (formula not disclosed)
- Designed to incentivize growth-driving behaviors
Tiered Ranking System
Six levels determine user status:
Bronze → Silver → Gold → Platinum → Diamond → Challenger
Rankings are based on total points relative to other users.
Duration: First season runs for 10 weeks starting March 21, 2025
Note: Backpack reserves the right to adjust allocated points.
How to Participate
- Sign up at Backpack Exchange
- Complete KYC verification
- Use any service: spot trading, futures, lending—to earn points
How to Sign Up on Backpack
- Visit Backpack Exchange → Enter email and password → Verify via email
Proceed with KYC:
- Select individual account type
- Provide personal details (name, address)
- Upload ID or passport
- Wait for approval (typically within 12–24 hours)
Transaction Fees Overview
Trading Fees
Default rates:
- Maker: 0.085%
- Taker: 0.095%
Higher trading volumes unlock lower fees across nine tiers—from Level 1 to VIP 4—with VIP 4 enjoying zero maker fees.
Withdrawal Fees
| Cryptocurrency | Fee |
|---|---|
| USDC | 1 USDC |
| USDT | 1 USDT |
| BTC | 0.0002 BTC |
| ETH | 0.0014 ETH |
| SOL | 0.01 SOL |
No deposit fees apply. For updates, refer to Backpack’s official fee page.
Is Backpack Safe? Addressing Scam Concerns
Backpack is not a scam—it is a licensed and transparent exchange. However, phishing attacks are common: fake websites mimic Backpack’s interface to steal login credentials.
Stay Protected With These Steps
- Always access Backpack via the official URL; bookmark it after verification
- Enable two-factor authentication (2FA) immediately after registration
With 2FA enabled (e.g., Google Authenticator), every withdrawal requires an additional verification code—dramatically reducing the risk of unauthorized access.
Frequently Asked Questions (FAQ)
Q: What is Backpack Exchange?
A: A regulated centralized crypto exchange offering spot and futures trading with strong compliance credentials in Dubai and the U.S.
Q: How do I deposit funds?
A: Currently supports USDC and USDT deposits via the Solana network only.
Q: Does Backpack have a mobile app?
A: Yes—download it directly from the official website for iOS and Android.
Q: How can I contact customer support?
A: Reach out via:
- Email: [email protected]
- Telegram: https://t.me/BackpackExchangeSupportChinese
- Discord: https://discord.com/invite/backpack
Q: Can I withdraw fiat directly?
A: Yes—now supported via USDC-to-USD wire transfers with zero platform fees.
Q: Are there plans for a native token?
A: While unconfirmed, the Backpack Points Program suggests a possible future token launch.
👉 Stay ahead with platforms pioneering real-world crypto utility.