Top FTX Creditors’ Representative Shares Update on Countries Restricted from Repayments

Sunil Kavuri, a major representative of one of FTX’s creditor groups, has shared a fresh update about countries restricted from the defunct exchange’s repayment. 

In a recent X post, Kavuri disclosed that FTX creditors from countries such as Nigeria, Russia, Saudi Arabia, Ukraine, China, Iran, and Egypt are ineligible for payouts through the exchange’s current distribution providers- Bitgo and Kraken. 

FTX Claims Distribution Update

FTX creditors in countries including Egypt, Iran, Nigeria, Ukraine, China, Russia, Saudi Arabia are not currently eligible for distribution with the current distribution providers @bitgo @krakenfx despite FTX recognizing, creditors may have an… pic.twitter.com/GwgJylCNvU

— Sunil (FTX Creditor Champion) (@sunil_trades) January 17, 2025

This development comes despite FTX acknowledging that users from these countries might have accounts on these crypto exchanges. However, the defunct exchange made a U-turn, providing a list of jurisdictions not eligible for compensation through Kraken and Bitgo. 

The list, which was updated on January 16, 2025, highlights 163 jurisdictions that are ineligible for FTX payout through Bitgo and Kraken, including Russia, Nigeria, Ukraine, China, Egypt, Iran, and Saudi Arabia. 

Notably, FTX claims it is actively reviewing eligible jurisdictions, with plans to update the portal with any changes to the list of eligible regions in the future. 

FTX Commences Repayment Process 

Recall that the FTX bankruptcy estate kicked off its reorganization plan for the convenient class on January 3, 2025. 

Following the commencement of the reorganization plan, the convenient class creditors, who have less than $50,000 worth of claims, were mandated to complete the distribution prerequisites. 

This process requires convenient class creditors to submit a tax form, choose their desired distribution providers (Bitgo or Kraken), and complete mandatory KYC requirements on or before the deadline, slated for January 20, 2025. 

After completing the process, FTX will repay convenience class creditors within 60 days of the court-approved reorganization plan. This suggests that convenience class creditors could receive payouts on or before March 4, 2025. 

It is worth mentioning that the convenience class creditors account for around 90% of all eligible creditors on FTX. These users will receive their claims in USD. They could decide to either withdraw the USD from the trading platforms or convert them to crypto assets.