FTX’s Creditors: The Unlucky 8% Stuck in Restricted Regions! 😱💸

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So, here we are, folks! The bankrupt crypto circus known as FTX is apparently in a bit of a pickle, owing a mountain of cash to creditors scattered across more than twenty countries. And guess what? Ukraine is on that list! 🎪💰

According to our hero, Sunil Kavuri (who I’m sure has a cape somewhere), a bunch of crypto investors from places like Ukraine, China, and Russia are left high and dry, not eligible for any of those sweet, sweet FTX distributions. Talk about a bad breakup! 💔

FTX Claims

A lot of claims are from Jurisdictions not eligible for FTX distributions at the moment which include:

Russia, China, Egypt, Nigeria, Ukraine

FTX is reviewing options

China is the largest with 8% of customers

— Sunil (FTX Creditor Champion) (@sunil_trades) February 21, 2025

In his post, Sunil attached a graph from a November 2022 bankruptcy hearing. You know, just to spice things up! The chart revealed that after the FTX fiasco, China accounted for a whopping 8% of the exchange’s user base. Right behind the Virgin Islands (11%) and the Cayman Islands (22%). Because who doesn’t want to be in a competition for the most exclusive tax havens? 🏝️📊

In total, 26 countries, including our friends Ukraine, Russia, Belarus, and Iran, are getting the cold shoulder when it comes to payouts, which are being handled by BitGo and Kraken. Sounds like a party no one wants to attend! 🎉🚫

Now, the reason behind these restrictions is as clear as mud, but we can assume it’s a delightful mix of regulatory hurdles and cross-border payment issues. Because why make things easy, right? 🙄

Back in October 2024, FTX claimed it had recovered between $14.7 billion and $16.5 billion in assets for distribution. Meanwhile, they estimated they owed creditors around $11.2 billion. So, under the plan approved by Delaware bankruptcy Judge John Dorsey, 98% of FTX creditors are set to receive 119% of their allowed claims as of November 2022. It’s like a weird math problem that somehow ends with everyone getting a little extra! 📈✨

Just a reminder: FTX went belly up in November 2022, and the whole saga was filled with accusations of fraud and mismanagement. Because, of course, what’s a crypto exchange without a little drama? 🎭💥

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2025-02-21 15:42