The Bankrupt Crypto Exchange declared complaints from 163 jurisdictions as “non -eligible” to distributions. This decision leaves many investors in LURCH.
On February 18, FTX began its first series of reimbursements, focusing on creditors who lost up to $ 50,000. These people, classified as the “convenience class”, should receive 100% of their complaints, plus 9% of annual interest depending on their assets. Although it is a step in the right direction, not all creditors recover their money.
FTX excludes complaints from key countries, leaving creditors in limbo
The FTX Sunil Kavuri’s creditor and lawyer recently shared a list of countries where complaints were deemed not eligible. Among them are Russia, China, Egypt, Nigeria and Ukraine. Kavuri said that many applicants for these jurisdictions are faced with rejection and that the FTX is currently examining its options. For those who are left out, this news is a bitter pill to swallow.
FTX complaints
Many claims come from jurisdictions not eligible for FTX distributions for the moment, in particular:
Russia, China, Egypt, Nigeria, Ukraine
FTX examines options
China is the largest with 8% of customers pic.twitter.com/ts1itoqhal
– Sunil (champion of the creditor FTX) (@sunil_trades) February 21, 2025
The FTX’s decision to exclude complaints from these countries adds another layer of frustration to an already disorderly bankruptcy case. Many affected creditors are now stuck between a rock and a difficult place, with little clarity to find out if they will never recover their lost funds. The company has not provided specific reasons for exclusions, but regulatory and legal concerns are probably at stake.
The next payment of the FTX for May, the creditors must act by April 11
Despite this setback, the reimbursement process continues. The next FTX distribution round is scheduled for May 30. This phase will discuss complaints exceeding $ 50,000, covering “Class 5 Customer Law complaints” and “general claims for class 6”. These include customers who had assets on the platform when he collapsed, as well as other creditors such as business partners and suppliers.
FTX reimbursements
FTX creators with complaints <$ 50,000 ~ $ 1.2 billion
FTX has credited distribution suppliers – Kraken / Bitgo – with FTX creditor funds
FTX creditors will receive distribution on February 18, 2025
Complaints <$ 50,000 obtain 20.5% interest from the date of the petition - November 11, 2022 pic.twitter.com/iqs6g8pf9j
– Sunil (champion of the creditor FTX) (@sunil_trades) February 8, 2025
To qualify for the distribution of May, creditors must verify their complaints by April 11. In addition, they must select a distribution agent by the same deadline. Those who do not could risk completely missing their reimbursements.
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