FTX Begins Repayments, But Investors in 26 Countries Face Exclusion

• FTX has begun repaying customers, with initial distributions starting on February 18, 2025, and further payments scheduled for April and May.
• The repayments of FTX customers do not extend to investors located in 26 countries which include Ukraine, China, and Russia because of regulatory complexities between jurisdictions.
• Sam Bankman-Fried who founded FTX now spends 25 years in prison due to his role in the company's failure and stealing $8 billion customer assets.

Bankrupt cryptocurrency exchange FTX has initiated the repayment process to its customers, with the first distribution occurring on February 18, 2025. Subsequent disbursements are scheduled for April 11 and May 30, 2025. The company aims to return between €12.3 billion and €15 billion in recovered assets to its creditors. These repayments are being facilitated through cryptocurrency platforms BitGo and Kraken.

The payment distributions from FTX do not extend to investors based in 26 specific countries which include Ukraine, China, Russia, Belarus, and Iran. 26 countries face exclusion from receiving payments from FTX despite unknown official regulatory details which likely include payment and border restrictions.

Under the approval of Judge John Dorsey in October 2024 Delaware bankruptcy proceedings FTX gained authorization to begin its repayment process. Following the plan's effective date within 60 days, FTX's creditors who represent 98% of all allowed claims will receive about 118% of what they should be paid. Money recovered through the sale of FTX's assets covers both FTX Ventures with its venture capital investments and the Alameda Research fund. 

A substantial financial gap emerged when cryptocurrency exchange FTX suffered its collapse in November of 2022 because of allegations involving fraud and poor management. Sam Bankman-Fried the company founder now faces 25 years in prison after being convicted for his role in damaging FTX operations along with stealing $8 billion from client accounts. 

Concerns among international investors grew because specific countries did not get included in the repayment procedures. FTX focuses on paying out most of its creditors as it executes its planned distribution while handling regulatory complexities that arise from paying across international borders.

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