Sunil Kavuri, a representative of the FTX Creditors’ group, revealed that the bankrupt crypto exchange is exploring ways to compensate creditors in multiple countries, including Russia, China, Egypt, Nigeria, and Ukraine.
According to Kavuri, creditors from these regions are currently excluded from ongoing distributions despite making up a significant portion of FTX’s user base. For context, data on the bankrupt exchange creditor distribution indicates that China accounts for the largest share, representing 8% of total claims.
Although Kavuri did not specify why these creditors are ineligible, he suggested that FTX’s management is actively working on potential solutions. His statement offers some clarity to affected users who have been waiting for reimbursements.
FTX processed its first round of payments to smaller creditors on Feb. 18. However, customers in restricted countries have yet to receive funds, and there is no official timeline for resolving their claims.
Meanwhile, the exclusion does not come as a surprise, considering that Kraken and BitGo—the designated distribution platforms—are unavailable in most of these regions.
Still, the absence of these services may not be the sole reason for the delay. Kavuri pointed out that some Egyptian creditors hold accounts with Kraken and BitGo but remain ineligible for payments.
Meanwhile, the exclusion is not entirely unexpected, given that the two designated distribution platforms—Kraken and BitGo—are unavailable in most of these countries.
FTX repayment progress
Meanwhile, Kraken co-CEO Arjun Sethi confirmed on Feb. 19 that the exchange had successfully processed the first round of FTX creditor payments. Over 46,000 claimants received funds as part of the initial distribution.
He added:
“Two years later, FTX remains a reminder of why accountability, security, and transparency matter. Many offshore exchanges still don’t provide proof of reserves—we do, and always will.”
FTX has prioritized smaller creditors, fully reimbursing those with approved claims under $50,000. These individuals also received 9% annual interest accrued since the company filed for Chapter 11 bankruptcy in November 2022.
More significant creditors—those with claims exceeding $50,000—are expected to start receiving payments in the second quarter of this year.
FTX collapsed in November 2022 following allegations of financial misconduct and fraud. Former CEO Sam Bankman-Fried was later sentenced to 25 years in prison. However, he continues to insist that FTX was not insolvent but instead faced liquidity challenges at the time of its bankruptcy.
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