The bankrupt crypto exchange FTX has declared claims from 163 jurisdictions as 'not eligible' for distributions, leaving many investors in limbo.
FTX Exclusions: Which Countries Are Affected
FTX creditor and advocate Sunil Kavuri recently shared a list of countries where claims have been deemed ineligible, including Russia, China, Egypt, Nigeria, and Ukraine. Many claimants from these jurisdictions are facing rejections, and FTX is reviewing its options. For those left out, this news is a bitter pill to swallow.
Next Payout Phase: What Awaits Creditors
Despite this setback, the repayment process continues. FTX's next distribution round is scheduled for May 30, covering claims exceeding $50,000 for 'Class 5 Customer Entitlement Claims' and 'Class 6 General Unsecured Claims.' These include customers who had assets on the platform when it collapsed, as well as other creditors such as trading partners and vendors.
Steps to Join the May Distribution
To qualify for the May distribution, creditors must verify their claims by April 11. Additionally, they must select a distribution agent by the same deadline. Those who fail to do so could risk missing out on their repayments altogether.
FTX's decision to exclude claims from 163 countries adds complexity to the bankruptcy process. Although the next payout round is approaching, many creditors remain in limbo.
