Users of the cryptocurrency exchange FTX from Ukraine may miss out on compensation payments due to a new motion filed by the FTX Recovery Trust in the Delaware bankruptcy court. The organization has proposed to suspend payments in 49 jurisdictions, including Ukraine, due to legal restrictions on cryptocurrency operations.
This is reported by Finway
Reasons for Payment Restrictions for FTX Users
One of FTX’s creditors, Sunil Kavouri, published a complete list of jurisdictions where users may not receive payments. Among the reasons cited are legislative prohibitions on cryptocurrency trading or restrictions on the activities of payment operators. In addition to Ukraine, the list includes China, Pakistan, North Korea, Iran, Iraq, Belarus, and other countries.
“Today, some creditors of the FTX Recovery Trust reside in jurisdictions where laws and regulations still restrict cryptocurrency operations. Distributing funds in such jurisdictions, in violation of these legislative restrictions, could lead to fines and penalties.”
Users from restricted jurisdictions account for approximately 5% of all authorized claims for payments. A key territory is China, which accounts for about 82% of the value of disputed claims.
Appeal Mechanism and Next Steps
The motion outlines the procedure for reviewing disputed claims. Once the court approves the relevant procedure, the organization will send official notifications to all affected creditors explaining the reasons for the denial of payments and will provide no less than 45 days for filing an objection. During this period, all payments for such claims will be suspended. If the dispute remains unresolved, the withheld funds and accrued interest will be returned to the general pool for further distribution.
It is noted that the FTX Recovery Trust has expressed its intention to make every effort to facilitate payments even in challenging jurisdictions, provided local laws allow it. However, in the event of a final denial of claims, users will lose the opportunity to receive compensation. Meanwhile, in comments on the publication, many users have reported that they have already consulted lawyers, and some accuse FTX management of attempting to misappropriate investors’ funds.
It is worth noting that the second phase of payments to FTX creditors began on May 30, 2025. To receive funds, users must go through authorization and select a service provider.