Backpack halted trading for scheduled maintenance at 10 a.m. UTC on July 3 and reopened two hours later, but the restart triggered account errors that forced CEO Armani Ferrante to promise reviews and compensation.
When spot and perpetual markets came back online, several users reported abnormal balance changes and order reversals.
Hebi said no audit trail appeared in the account history and that the errors coincided with Backpack’s downtime.
Ferrante addressed the events in a message to the project’s Discord channel, calling the incident “a programming error” and “unacceptable.”
He said the engineering team would “do a detailed review and further enhance our process so that it doesn’t happen again.”
Ferrante asked affected customers to email support@backpack.exchange and stated that he would personally handle the claims. He wrote:
“If you had any issues that was our fault, we will compensate.”
Ferrante added that the incident did not involve custody infrastructure, claiming that the funds are completely safe. He further noted that Backpack employs a two-tier multi-party computation wallet, combined with cold storage custody and continuous asset-by-asset balance reconciliation.
Backpack CEO did not offer a timetable for a post-mortem but said the company would publish findings after completing an internal audit.
He also reiterated Backpack’s policy of reimbursing any user loss caused by exchange malfunctions, including inadvertent liquidations or mis-priced fills.
