Sunil Kavuri, a representative from an FTX creditors group, recently reported on countries restricted from participating in FTX repayments. Jurisdictional rules prevent access to payouts in these regions.
Jurisdictional Challenges for FTX Creditors
Sunil Kavuri stated that residents of Nigeria, Russia, Saudi Arabia, Ukraine, China, Iran, and Egypt are currently ineligible for payouts through Bitgo and Kraken due to jurisdictional restrictions. These countries are listed as ineligible for compensation through the partner crypto exchanges.
Repayments Under New Reorganization Plan
After months of waiting, the FTX reorganization plan took effect on January 3, 2025. The first round of repayments targets claimants with small claims, below $50,000, aiming to compensate 98% of users with payouts exceeding 100% of their declared holdings. Users are required to fulfill pre-distribution requirements by January 20.
FTX Creditors Discuss Repayment Basis
Several creditors express concerns over repayments being evaluated at cryptocurrency valuations from November 2022, when FTX filed for bankruptcy. Since the collapse, Bitcoin has surged over 370%, potentially resulting in losses for creditors if settled at old rates.
FTX plans to return $1.2 billion to users affected by its crash three years ago, while continuing to review the eligibility of jurisdictions for payouts.
