Defunct cryptocurrency exchange FTX has encountered issues with ineligible jurisdiction claims as it begins repaying creditors who lost funds in its high-profile bankruptcy case.
On Feb. 18, the bankrupt exchange <a href="https://cointelegraph.com/news/ftx-creditors-speak-plans-lessons-repayments-sbf" rel="noopener noreferrer nofollow" target="null">initiated its first round of repayments</a>. Those who lost up to $50,000, classified by the exchange as the “Convenience Class,” were expected to receive 100% of their claims plus 9% annual interest based on their holdings.&nbsp;
While the repayments <a href="https://cointelegraph.com/news/ftx-1-2-b-repayment-key-moment-crypto-industry-s-recovery" rel="noopener noreferrer nofollow" target="_self">mark a significant step</a> in the crypto industry’s recovery, FTX now faces claims from restricted jurisdictions. On Feb. 21, FTX creditor and advocate Sunil Kavuri shared a list of countries ineligible for claims, including Russia, China, Egypt, Nigeria, and Ukraine.
Kavuri said there were many claims from countries “not eligible for FTX distributions.” The FTX creditor and advocate added that the bankrupt exchange was already reviewing its options.&nbsp;
<figure><img alt="FTX claims from 163 jurisdictions ‘not eligible’ for distributions" src="https://s3.cointelegraph.com/uploads/2025-02/0195287c-c0f8-7168-b609-c93dedc38ae1" title="">
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 Source: <a href="https://x.com/sunil_trades/status/1892890544952557708" rel="noopener noreferrer nofollow" target="null">Sunil Kavuri</a>
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<h2 id="ftx-schedules-the-next-payment-distributions-in-may">FTX schedules the next payment distributions in May</h2>
In its Feb. 18 announcement, FTX said its <a href="https://cointelegraph.com/news/ftx-next-repayment-distribution-may-2025" rel="noopener noreferrer nofollow" target="null">next repayment distribution</a> date will be May 30. This round will cover “Class 5 Customer Entitlement Claims and Class 6 General Unsecured Claims.” These are users who had assets on the exchange when it collapsed. It also includes other creditors, such as trading partners and vendors.&nbsp;
To qualify, creditors must verify their claims by April 11. Kavuri <a href="https://x.com/sunil_trades/status/1891916916438204457" rel="noopener noreferrer nofollow" target="_blank">added</a> that the May repayment round will cover claims exceeding $50,000, and creditors must select their distribution agent by the same deadline.
Related: <a href="https://cointelegraph.com/news/sbf-1b-forfeited-assets-private-jets-political-donations-court" rel="noopener noreferrer nofollow" target="null">SBF’s $1B forfeited assets include private jets, political donations: Court</a>
<h2 id="former-ftx-ceo-sam-bankman-fried-aims-for-pardon">Former FTX CEO Sam Bankman-Fried aims for pardon</h2>
While FTX creditors scramble through the hassles of the repayment process, former FTX CEO Sam “SBF” Bankman-Fried’s parents are trying to <a href="https://cointelegraph.com/news/sbf-parents-seek-pardon-trump-report" rel="noopener noreferrer nofollow" target="null">secure a pardon</a> for him from US President Donald Trump.
On Jan. 30, Bloomberg reported that SBF’s parents met with lawyers and other figures close to the Trump administration to explore whether clemency was possible for their son, who in March 2024 was sentenced to 25 years in prison.&nbsp;
Following the clemency push, SBF made positive remarks about the Republican Party and criticized the Democratic Party. SBF <a href="https://cointelegraph.com/news/sbf-cozies-up-gop-interview-clemency-push" rel="noopener noreferrer nofollow" target="null">said he was frustrated</a> and disappointed with the Biden administration and the Democratic Party despite donating to them before the 2020 election.
Magazine: <a href="https://cointelegraph.com/magazine/bitcoin-miners-landlords-chinese-ethereum-whales-mind-control-notes-asia-express/" rel="noopener noreferrer nofollow" target="null">ETH whale’s wild $6.8M ‘mind control’ claims, Bitcoin power thefts: Asia Express</a>

FTX claims from 163 jurisdictions ‘not eligible’ for distributions

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