TX Blocks Claims from 163 Jurisdictions Amid Repayment Process
Defunct cryptocurrency exchange FTX faces a new hurdle as it starts repaying creditors affected by its bankruptcy. Claims from 163 jurisdictions, including Russia, China, Egypt, Nigeria, and Ukraine, have been deemed ineligible for distributions.
First Round of Repayments Begins
On Feb. 18, FTX initiated its first round of repayments. Creditors who lost up to $50,000—categorized as the “Convenience Class”—were set to receive 100% of their claims with an additional 9% annual interest.
While this sets a precedence, the trading system currently faces complaints from customers in blocked countries. FTX debtor and attorney Sunil Kavuri unveiled a list of affected countries and said that FTX is now reviewing its options for these claims.
Next Round of Payments to be Made in May
FTX has announced that its next creditor repayment round will take place on May 30. This round will cover “Class 5 Customer Entitlement Claims” and “Class 6 General Unsecured Claims,” which include users with larger holdings and trading partners.
To be eligible, creditors must verify their claims by April 11 and select their distribution agent before the deadline. This phase covers claims exceeding $50,000.
SBF’s Parents Seek Clemency for Their Son
As creditors navigate repayment complexities, former FTX CEO Sam Bankman-Fried (SBF) remains entangled in legal battles. His parents are reportedly seeking a pardon from former U.S. President Donald Trump.
According to Bloomberg, SBF’s parents met with legal experts and Trump allies to explore possible clemency. This follows his 25-year prison sentence in March 2024.
SBF has since shifted his political stance, criticizing the Democratic Party despite his past donations. His recent remarks suggest frustration with the Biden administration, potentially as part of a broader clemency effort.
FTX’s bankruptcy saga continues to unfold, with creditors awaiting the next payout and legal battles surrounding its former CEO still in motion.
