FTX Blocks 163 Countries in Repayment Process

FTX, the once-thriving cryptocurrency exchange, is now grappling with a new challenge as it embarks on the repayment process to its creditors following its bankruptcy. The company has blocked claims from 163 jurisdictions, including Russia, China, Egypt, Nigeria, and Ukraine, deeming them ineligible for distributions. This move has sparked complaints from customers in the affected countries.

On February 18, FTX initiated its first round of repayments, with creditors who lost up to $50,000, categorized as the "Convenience Class," set to receive 100% of their claims plus an additional 9% annual interest. While this initial round of repayments has begun, the trading system still faces criticism from customers in the blocked countries. FTX's debtor and attorney, Sunil Kavuri, has released a list of affected countries and is currently reviewing options for these claims.

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.

Meanwhile, former FTX CEO Sam Bankman-Fried (SBF) continues to face legal battles. His parents are reportedly seeking a pardon from former U.S. President Donald Trump. According to Bloomberg, SBF's parents have 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.

The FTX bankruptcy saga continues to unfold, with creditors eagerly awaiting the next payout and legal battles surrounding its former CEO still in motion. The company's repayment process and the fate of SBF remain uncertain, leaving the crypto community on edge as they await further developments.