Today, Sunil Cavouri, a Creditor FTX activist, announced that some judicial states were not eligible for FTX claim distributions via the prepared stock exchanges due to restrictions in those countries. Cavouri pointed out that the FTX bankruptcy was currently looking for ways to pay the claims in every judicial state, including Russia, China, Nigeria, Ukraine and Egypt.
Cavourine subscriber The “Global Customer Distribution” Pie of Pie of Banking from November 2022, which China has determined as the largest judicial mandate that is not qualified for FTX claim distributions with about 8 % of the global customer base. On January 17, Cavouri claimed that the FTX creditors from countries such as Egypt, Iran, Nigeria, Ukraine, China, Russia and Saudi Arabia were unable to obtain their claims through Bito and Kraken’s nursery exchanges. In total, Cavouri highlighted more than 20 countries that were excluded from the payments with which Kraken and Bitgo dealt with.
According to Kafoury, organizational obstacles and cross -border payment issues were likely to be major factors behind these restrictions, although the exact reasons for each country were not clear. The representative of the Croditor FTX group had previously expected the first payment to start in February. The FTX creditors were confirmed on Kraken with claims less than $ 50,000 on Tuesday via Reddit that the recovered amounts began to decline in their accounts.
FTX creditor raises concerns about judicial exceptions
FTX claims
Many claims from the states that are not eligible for FTX distributions at the present time, which include:
Russia, China, Egypt, Nigeria, Ukraine
FTX review options
China is the largest with 8 % of customers pic.twitter.com/ts1itoqhal
Sunil (FTX Creditor Champion) (Sunil_trades) February 21, 2025
The FTX Kavuri circular said that the encryption investors are from about 26 countries, including Egypt, Iran, Nigeria, Ukraine, China, Russia and Saudi Arabia, were not currently qualified for distribution with Bitgo and Krakn despite guarding exchanges. Excination FTX Exchange was previously estimated that he owes creditors of about $ 11.2 billion.
FTX said in October 2024 that it recovered between $ 14.7 billion and $ 16.5 billion of assets for distribution. As of November 2022, when the stock exchange collapsed, approximately 98 % of the FTX creditors were appointed according to the plan approved by the Delaware John Dorsy bankruptcy judge to receive 119 % of their permitted claims.
The FTX customer portal has published an updated list of distribution service providers available on the basis of the residence country with a brief description of the offers offered by each country. All creditors were asked to complete the KYC (step 3) and tax compliance (step 7) before choosing and the area with the distribution service provider. The additional distribution service provider options that have become available over time will be updated according to FTX. More importantly, customers are not allowed to divide their claim distributions through multiple distribution service providers or make changes when making choices.
FTX puts 1.2 billion dollars to start customer recovery in February
Kavuri follows the recovery process and revealed that Excination FTX has already paid $ 800 million in the 1.2 billion dollar distribution tour. He added that 162,000 accounts represent 35 % of the 460,000 qualified claims, have received payments so far. The money money was equally divided, with 50 % to the original FTX account holders, while the other half went to the debt buyers who obtained claims for highly slope discounts. Payments were processed through Bitgo and Kraken, and the beneficiaries had to obtain money in their accounts between one day to three working days.
Cavouri revealed earlier that FTX had allocated $ 7 billion for this stage of distributions with a final goal of $ 17 billion in the total recovered amounts. However, the Creditor FTX recovery summary estimated that the total claims across all creditors groups to summarize up to 11.75 billion dollars, and the recovery rates will depend on the type of claim. According to estimates, guaranteed claims and customer demands witnessed the recovery between 100 % and 142 %, while the total recovery rates ranged between 123 % and 138 %.
FTX said it would pay the class creditors within 60 days of the court reorganization plan, indicating that they may receive batches in or before March 4, 2025. The classified convenience accounts represents about 90 % of all the creditors qualified on FTX.
“Our work has not ended – we intend to continue to recover and return money to the additional claim classes.”
–John Ji Ray IIIFTX Recovery Trust
Cavour also noticed that creditors should check their claims by the date of the record on April 11 to qualify for the next distribution in May. FTX estimated that the total value of the recovery amounts scheduled for the May distribution will range between 14.5 billion dollars and 16.3 billion dollars.
Cryptopolitan Academy: Are web3 errors to appeal? – Discover here