Bahamas FTX creditors will begin receiving repayments through Bitgo, one of the designated distribution platforms, on February 18, 2025.
Individual claims from Bahamas-based creditors are $50,000, according to court-approved documents shared by FTX creditor activist Sunil. The repayment process must begin distribution within 60 days, in accordance with the restructuring plan that took effect on January 3rd.
Limited funding and KYC requirements
FTX allocated $13 billion to creditor repayments, but half of this amount remains reserved for dispute claims. As a result, the exact portion available to Bahamas-based creditors remains unknown. Funds for eligible claimants will be accessible from 10am on February 18th.
During the first distribution phase, we pay approximately $800 million to claimants who have successfully completed the Know Customer (KYC) process. Once KYC verification is complete, an additional $400 million will be distributed.
More farther Report Show that KYC’s procedures are incomplete and that there are currently approximately $345 million in claims. In particular, creditors are expected to receive 9% interest per year from November 11, 2022.
Assuming all KYCs are handed over, $1.2 billion https://t.co/yngjisvfva
– Sunil (FTX Creditor Champion) (@sunil_trades) February 4, 2025
Jurisdictional restrictions on repayments
Despite the continued distribution, several jurisdictions remain unsuitable for repayment through FTX’s designated platforms, Bitgo and Kraken. Updated Documents release January 16, 2025, it stated that 163 jurisdictions are restricted from receiving payments. This list includes Nigeria, Russia, Ukraine, China, Iran, Egypt and Saudi Arabia.
FTX initially admitted that users in these regions had accounts on designated platforms, but later reversed their stance and confirmed their exclusion.
The exchange has checked the list of eligible jurisdictions and indicates that revisions may be made.
Background and legal development
ftxonce major crypto exchanges collapsed in 2022 after corporate fraud management and revelation of fraud.
The platform was headquartered in the Bahamas under the leadership of founder Sam Bankman Fried. Following his conviction on multiple fraud charges, bank Fried was sentenced to 25 years in prison.
He then challenged the verdict, alleging judicial bias, and requested a formal retrial. Reports suggest that his parents have approached former US President Donald Trump. Please ask for pardon.
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