FTX has about $900 million lined up for July 31, but the payout only reaches creditors who cleared the June 16 checks and completed onboarding with an available provider.
FTX announced that holders of allowed claims in Classes 5A, 5B, 6A, 6B and 7 who met those conditions should receive funds from BitGo, Kraken or Payoneer within one to three business days from July 31.
According to FTX’s distribution dashboard FAQ, the claim had to be allowed and the original holder had to clear KYC by the June 16 record date. A valid tax form, successful provider onboarding and sanctions screening also had to be completed by then.
Who remains blocked
As of press time, FTX’s provider-eligibility page, still displayed a roster dated May 22 of 45 jurisdictions whose residents cannot select a distribution provider: Afghanistan, Algeria, Bangladesh, Belarus, Burundi, Cambodia, Cameroon, Central African Republic, Chad, China, Colombia, Democratic Republic of the Congo, Republic of the Congo, Cuba, Egypt, Equatorial Guinea, Ethiopia, Fiji, Gabon, Guernsey, Honduras, Iran, Iraq, Kuwait, Lebanon, Lesotho, Libya, Macau, Malawi, Maldives, Moldova, Morocco, Myanmar (Burma), Nepal, North Korea, Qatar, Russia, Rwanda, Saudi Arabia, Somalia, Sudan, Syria, Tunisia, Ukraine and Western Sahara.
FTX says provider coverage may change and additional options may be added, making the roster a dated snapshot rather than a permanent bar. For now, when no available provider can service a jurisdiction, FTX defers the distribution.
An affected creditor must wait for coverage, monitor the FTX Customer Portal and email for updates, and then successfully onboard before payment can occur. Even when the portal displays a residence-based option, the provider makes the final onboarding decision.
Later coverage cannot restore the July 31 payment for someone who failed to complete onboarding by the June 16 cutoff. It can open a path to a later distribution, subject to successful onboarding and the plan’s deadlines.
Creditors who can access a provider still face a consequential choice. Distributions cannot be split across providers, and the selection is final. By onboarding, a creditor irrevocably gives up receiving cash directly from FTX and directs FTX to pay the chosen provider instead. Questions about funds in that provider account then go to the provider’s support team.
FTX’s dashboard FAQ also says an allowed-claim holder who does not successfully onboard within six months from July 31 may forfeit the right to distributions on that claim. Missing June 16 prevents payment in this round; failing to onboard for the longer period creates the separate forfeiture risk.
Why distributions exceed 100%
FTX’s announced cumulative distributions of 105% for Classes 5A and 5B, 103% for Classes 6A and 6B, and 120% for Class 7 do not represent gains against current crypto prices. They are percentages of allowed plan claims.
FTX’s claim framework uses a court-approved conversion table to calculate digital-asset claim values, so the percentage describes recovery against the allowed claim amount, not the market value of the assets today.
The post FTX begins $900M payout as creditors in 45 countries could lose their claims within 6 months appeared first on CryptoSlate.
