FTX, the collapsed cryptocurrency exchange, has started repaying creditors who lost funds when it went bankrupt. However, some claimants from certain countries will not receive distributions due to jurisdictional restrictions.
FTX Excludes Claims from Certain Countries
FTX began its first round of repayments on Feb. 18. This round covers creditors who lost up to $50,000, a group the exchange classifies as the “Convenience Class.” These creditors will receive 100% of their approved claims, along with 9% annual interest calculated from November 2022.
While these repayments are a major step in the crypto industry’s recovery, FTX has encountered issues with claims from restricted jurisdictions. On Feb. 21, FTX creditor and advocate Sunil Kavuri shared a list of 163 countries whose claims have been deemed ineligible. The list includes Russia, China, Egypt, Nigeria, and Ukraine.
Kavuri said that FTX is reviewing its options regarding these restricted claims but has not yet provided a clear resolution for affected creditors.
Next Repayment Round Scheduled for May 30
FTX has also confirmed the date for its next repayment round, which is set for May 30, 2025. This round will cover larger creditors who had claims exceeding $50,000 when the exchange collapsed. The payment will also include trading partners, vendors, and other general creditors.
To qualify for this distribution, creditors must verify their claims by April 11. They must also select a distribution agent by the same deadline to process their repayments.
FTX has not yet confirmed how much will be distributed in this phase, but it is expected to involve a larger portion of the total $16 billion repayment plan.
Sam Bankman-Fried’s Parents Seek Pardon for Their Son
As FTX creditors work through the repayment process, former FTX CEO Sam Bankman-Fried (SBF) is seeking a presidential pardon.
On Jan. 30, SBF’s parents met with legal and political figures close to U.S. President Donald Trump. They were reportedly discussing whether a clemency request could be made on behalf of their son, who was sentenced to 25 years in prison in March 2024 for fraud and financial crimes related to FTX’s collapse.
Following these efforts, SBF made public statements criticizing the Democratic Party, despite previously donating to Democratic candidates before the 2020 U.S. election. He expressed frustration with President Joe Biden’s administration and seems to become Pro-Trump as his legal team explores possible options for his release.
