The bankrupt cryptocurrency exchange FTX has initiated the process of returning funds to its customers, but investors in 26 countries will not receive their funds.
FTX Customer Repayment Begins
FTX initiated the first stage of repayments on February 18, 2025. Subsequent payments are scheduled for April and May of the same year. The exchange aims to return between €12.3 billion and €15 billion to its creditors. Payment phases are conducted through cryptocurrency platforms BitGo and Kraken.
Excluded Countries and Challenges
The countries whose investors will not receive repayments include Ukraine, China, Russia, Belarus, and Iran, totaling 26 countries. The exclusion is due to regulatory complexities related to cross-border payments and restrictions.
Sam Bankman-Fried and Legal Aspects
FTX founder Sam Bankman-Fried is currently serving a 25-year sentence following a conviction for fraud and the misappropriation of $8 billion in client funds. Delaware court proceedings in October 2024 allowed FTX to start the repayment process, authorized by Judge John Dorsey.
Despite challenges and regulatory hurdles, FTX is working to return funds to its creditors, focusing on legal aspects and international payment specifics.
