Over 8% of FTX creditors located in restricted regions, including China and Ukraine: report

Bankrupt cryptocurrency exchange FTX appears to owe a significant sum of money to creditors in more than twenty countries, including Ukraine.

Crypto investors from more than 20 customers, including Ukraine, China, and Russia, are not eligible for FTX distributions, Sunil Kavuri, an FTX creditor, noted in an X post on Feb. 21.

In the post, Kavuri attached a graph from a November 2022 bankruptcy hearing. The chart showed that following the FTX collapse, China made up 8% of the exchange’s user base, next only to the Virgin Islands (11%) and the Cayman Islands (22%). In total, 26 countries, including Ukraine, Russia, Belarus, and Iran, are excluded from payouts, which are being handled by BitGo and Kraken.

While the exact reason behind those limitations is unclear, it’s assumed that regulatory hurdles and cross-border payment issues are likely key factors.

Back in October 2024, FTX said it had recovered between $14.7 billion and $16.5 billion in assets for distribution. The exchange previously estimated it owed creditors around $11.2 billion. Under the plan approved by Delaware bankruptcy Judge John Dorsey, 98% of FTX creditors are set to receive 119% of their allowed claims as of November 2022, when the exchange collapsed.

FTX went bankrupt in November 2022. The company’s downfall was riddled with accusations of fraud and mismanagement aimed at both the exchange and its sister company, Alameda Research.