Tuesday, July 1, 2025
Daily Crypto Post
  • Home
  • News
    • Altcoins News
    • Cryptocurrency News
  • Market
    • Price Analysis
  • About
  • Contact
No Result
View All Result
  • Home
  • News
    • Altcoins News
    • Cryptocurrency News
  • Market
    • Price Analysis
  • About
  • Contact
No Result
View All Result
Daily Crypto Post
No Result
View All Result

FTX Creditor Payouts Begin, but Many Jurisdictions Are Excluded—China Leads the Ineligible List

Irene Mukiri by Irene Mukiri
February 21, 2025
in Binance Feed, Market
Reading Time: 4 mins read
FTX Creditor Payouts Begin, but Many Jurisdictions Are Excluded—China Leads the Ineligible List
Share on FacebookShare on TwitterShare on RedditShare on Telegram
  • FTX’s repayment plan favors small creditors, leaving large claims pending until May.
  • Fiat-based settlements may boost liquidity but limit crypto market volatility.
  • Bankman-Fried disputes insolvency claims, alleging trial bias and political targeting.

FTX has begun distributing funds to eligible creditors, marking a significant step in its bankruptcy process. However, several creditors from restricted jurisdictions remain excluded from these payments. Besides, former CEO Sam Bankman-Fried continues to challenge the narrative surrounding FTX’s downfall, making controversial claims about the company’s financial standing and his trial.

Creditors in Restricted Jurisdictions Face Delays

According to FTX creditor Sunil, a substantial number of claims originate from regions currently ineligible for payouts, including China, Russia, Egypt, Nigeria, and Ukraine. Among these, China holds the largest portion, representing 8% of FTX’s customer base. The exchange is reviewing potential options for these creditors, but no clear resolution has been outlined.

Related articles

SEI Gains Momentum as Wyoming Stablecoin Bid Lifts Market Interest

SEI Gains Momentum as Wyoming Stablecoin Bid Lifts Market Interest

June 30, 2025
Liquidity Concentration on CEXes Highlights Maturity and Gaps in Top Crypto Assets

Liquidity Concentration on CEXes Highlights Maturity and Gaps in Top Crypto Assets

June 30, 2025

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 pic.twitter.com/Ts1iToqhAL

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

The ongoing distributions primarily benefit small creditors with claims of $50,000 or less. These individuals are set to receive full repayment, along with a 9% annual interest rate, potentially amounting to a 119% fiat-valued reimbursement. 

Today FTX Repayments: Claims <$50k
1st Distribution: 18 Feb 2025, 10am ET

Claims < $50k: $1.2bn (120.5%)
~ $800m out of $1.2bn to be paid
~ 162k out of 460k est. allowed claims

Approx.
50% Original Holders: $400m
50% Claim buyers: $400m

— Sunil (FTX Creditor Champion) (@sunil_trades) February 18, 2025

In this round, approximately $800 million has been disbursed, covering 162,000 accounts. This accounts for 35% of the estimated 460,000 eligible claims. However, larger claims exceeding $50,000 will not be addressed until after May 30.

Settlement in Fiat Currency Could Impact Crypto Markets

The first phase of FTX’s repayment plan is expected to distribute between $6.5 billion and $7 billion, with the current round of payments scheduled to continue until March 4. However, FTX has not disclosed the exact amount allocated for this initial phase.

Since the exchange is settling claims in fiat currency rather than cryptocurrency, the market may not experience significant volatility from these payouts. On the contrary, the influx of funds to creditors could introduce new liquidity into the market. Consequently, this could contribute to increased trading activity, as some recipients may reinvest in digital assets.

Bankman-Fried Challenges Bankruptcy Narrative

Meanwhile, Sam Bankman-Fried, serving a 25-year prison sentence for fraud, is making a last-ditch effort to reshape public perception of FTX’s collapse. He insists the company was never insolvent and claims there were sufficient assets to reimburse customers in full as early as November 2022. Furthermore, he accuses the bankruptcy team of intentionally misleading the public regarding FTX’s financial state.

According to Bankman-Fried, initial reports suggested the company held only $1 billion in assets, but subsequent findings revealed approximately $15 billion. He argues that this discovery proves FTX was not bankrupt and that the delays in repayments were unnecessary. However, many in the crypto community remain skeptical, pointing to FTX’s connections with Alameda Research and the mismanagement of customer funds.

Allegations of Political Targeting and a Rigged Trial

In addition to defending his actions, Bankman-Fried has taken an aggressive stance against the U.S. Department of Justice and Judge Lewis Kaplan. He claims his trial was politically motivated and unfairly influenced in favor of the prosecution. Moreover, he argues that his defense was prevented from countering misleading claims made in court, which ultimately shaped the jury’s perception of the case.

His recent statements have sparked further controversy, particularly his apparent shift in political allegiance. Previously associated with Democratic Party donations, Bankman-Fried now appears to be aligning with former President Donald Trump. Reports suggest his parents have been actively lobbying for a presidential pardon.

Tags: FTX NewsMarket News

Related Posts

SEI Gains Momentum as Wyoming Stablecoin Bid Lifts Market Interest

SEI Gains Momentum as Wyoming Stablecoin Bid Lifts Market Interest

by Munene Timothy
June 30, 2025

SEI surged by 50% in a week after Wyoming shortlisted it for its WYST stablecoin, boosting investor sentiment and public...

Liquidity Concentration on CEXes Highlights Maturity and Gaps in Top Crypto Assets

Liquidity Concentration on CEXes Highlights Maturity and Gaps in Top Crypto Assets

by Irene Mukiri
June 30, 2025

XRP liquidity is concentrated on Bitget, Binance, and Coinbase, totaling 67% depth. Solana surpasses XRP in liquidity strength despite its...

ETH Holds Ground After Liquidity Sweep, Resistance Retest Signals Potential Move to $3,400

ETH Holds Ground After Liquidity Sweep, Resistance Retest Signals Potential Move to $3,400

by Veronicah Peninah
June 30, 2025

Ethereum holds support at $2,425.62 after a key liquidity sweep near $2,300, indicating buyer interest. Multiple rejections at $2,700–$2,800 show...

Helius CEO Admits XRP Has Outshined Solana, Cites Technological Gap

Helius CEO Admits XRP Has Outshined Solana, Cites Technological Gap

by Jonathan Carls
June 30, 2025

XRP outperforms Solana in 2025, gaining 360% and surpassing SOL in market ranking. Mert Mumtaz’s comments signal a possible shift...

Is PEPE Leading the Meme Coin Revival Analyst Sees Jackpot July

Is PEPE Leading the Meme Coin Revival? Analyst Sees “Jackpot July”

by Munene Timothy
June 30, 2025

PEPE broke out of a falling wedge pattern with rising volume, indicating a potential bullish trend reversal. RSI at 45.39...

Load More

Recent News

  • SEI Gains Momentum as Wyoming Stablecoin Bid Lifts Market Interest
  • Liquidity Concentration on CEXes Highlights Maturity and Gaps in Top Crypto Assets
  • ETH Holds Ground After Liquidity Sweep, Resistance Retest Signals Potential Move to $3,400
  • Helius CEO Admits XRP Has Outshined Solana, Cites Technological Gap
  • Is PEPE Leading the Meme Coin Revival? Analyst Sees “Jackpot July”

Popular News

  • JasmyCoin Sets Bold $17 Price Target by 2026 as User Adoption Surges

    JasmyCoin Sets Bold $17 Price Target by 2026 as User Adoption Surges

    226 shares
    Share 90 Tweet 57
  • Will SHIB’s Utility Tokens Fuel Its Rise Over TON?

    204 shares
    Share 82 Tweet 51
  • Solana: SOL Has Just Reclaimed $7 Billion in DeFi TVL

    231 shares
    Share 92 Tweet 58
  • Over $33M in Token Unlocks Set to Impact Crypto Markets Amid Escalating Global Tensions

    199 shares
    Share 80 Tweet 50
  • Aptos and Filecoin Lead the Next Layer 1 Push — Will They Sustain the Rally?

    195 shares
    Share 78 Tweet 49

Live Crypto News | Bitcoin and Altcoins News & Insights.

Recent News

SEI Gains Momentum as Wyoming Stablecoin Bid Lifts Market Interest
SEI Gains Momentum as Wyoming Stablecoin Bid Lifts Market Interest
June 30, 2025
Liquidity Concentration on CEXes Highlights Maturity and Gaps in Top Crypto Assets
Liquidity Concentration on CEXes Highlights Maturity and Gaps in Top Crypto Assets
June 30, 2025
ETH Holds Ground After Liquidity Sweep, Resistance Retest Signals Potential Move to $3,400
ETH Holds Ground After Liquidity Sweep, Resistance Retest Signals Potential Move to $3,400
June 30, 2025

© Daily Crypto Post. Live Crypto News | Bitcoin and Altcoins News & Insights. All Rights Reserved.

No Result
View All Result
  • Home
  • News
    • Altcoins News
    • Cryptocurrency News
  • Market
    • Price Analysis
  • About
  • Contact