FTX Users from Ukraine Risk Not Getting Their Compensation Payments
Date: 2025-07-07 Author: Gabriel Deangelo Categories: BUSINESS
A new problem has arisen for users from some countries during the bankruptcy process of the FTX exchange. The FTX Recovery Trust filed a petition with the Delaware Bankruptcy Court to suspend payments in 49 jurisdictions, including Ukraine. The document notes that the legislation in these regions restricts cryptocurrency transactions, which can lead to fines when trying to transfer compensation.
According to a statement from one of FTX's creditors, Sunil Kavuri, users from these countries - about 5% of all those claiming payments - will temporarily be unable to receive their funds. The largest volume of disputed claims comes from China, which makes up about 82% of the total amount of such claims. The list also includes Pakistan, North Korea, Iran, Iraq, Belarus, and Ukraine.
The reason for the blocking is related to the fact that these countries prohibit cryptocurrency transactions or restrict the operation of platforms through which compensation payments are planned — such as the BitGo and Kraken exchanges. Therefore, payments in these jurisdictions are prohibited until the litigation is resolved.
If the court approves the procedure, FTX Recovery Trust will send notices to the affected creditors stating the reasons for the refusal and provide at least 45 days to file objections. During this period, all payments on disputed claims will be frozen. If the disagreements are not resolved, the funds, along with accrued interest, will return to the general payment pool for redistribution.
Despite the difficulties, FTX representatives stated their intention to make every effort to carry out compensation in these jurisdictions as much as possible.
In the comments under Sunil Kavuri's publication, many users expressed their dissatisfaction, stating that they have already sought legal assistance and accuse FTX management of misappropriation of funds.
It should be noted that the second stage of compensation payments began on May 30, 2025. To receive their funds, users must go through the authorization procedure and select a suitable provider to receive payments.
Thus, the situation with compensation payments from FTX remains tense, especially for users from countries with restrictions on cryptocurrency transactions, including Ukraine. Time will tell whether these issues can be resolved and lost assets returned.
