- FTX creditors in several countries, China, Russia and Ukraine included, unable to participate in claims.
- The FTX bankruptcy estate is however said to be evaluating options.
The FTX estate has begun its creditor repayments that could see more than $16 billion go to eligible creditors across the globe.
However, as FTX creditor Sunil Kavuri noted in a post on X on Feb. 21, the bankrupt crypto exchange is temporarily unable to process distributions to creditors in multiple countries.
In the post Sunil shared, FTX creditors in several countries, including Russia, China, Ukraine, Nigeria and Egypt are currently unable to participate in the distributions.
FTX Claims
A lot of claims are from Jurisdictions not eligible for FTX distributions at the moment which include:
Russia, China, Egypt, Nigeria, Ukraine
FTX is reviewing options
China is the largest with 8% of customers pic.twitter.com/Ts1iToqhAL
— Sunil (FTX Creditor Champion) (@sunil_trades) February 21, 2025
What happens next?
This ineligibility cuts across five regions, with China accounting for the largest share of customers at 8%. Per some user commentary, some Chinese users have reported “disputed status” claims, which Sunil says is also part of the temporarily unavailable distributions.
Notably, the FTX estate is reportedly evaluating its options
FTX announced the commencement of the initial distributions to the group of customers dubbed “Convenience Classes.” This group, in FTX’s Chapter 11 reorganization plan, are those with claims under $50,000. In its announcement on February 18, 2025, FTX said customers would receive their distributions within 1-3 business days.
According to the collapsed exchange’s bankruptcy estate, customers who miss this initial distribution will have to wait until May 30, 2025.
“The next record date for Convenience Claims that have become allowed since the initial record date and have not received their distribution is set for April 11, 2025. The Next Distribution is expected to commence on May 30, 2025,” they posted on X.
FTX imploded in November 2022, with founder & CEO Sam Bankman-Fried later arrested and charged. He was found guilty in November 2023 and sentenced to 25 years for defrauding customers and investors.
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