Users of the cryptocurrency exchange FTX from Ukraine may be left without compensation as the company has filed a motion to suspend payments in several jurisdictions. The list of restricted countries includes 49 territories, including Ukraine, China, Pakistan, North Korea, Iran, Iraq, and Belarus.
This is reported by Business • Media
Reasons for Payment Restrictions and Appeal Mechanism
FTX Recovery Trust has approached the Delaware Bankruptcy Court with a request to suspend payments in countries where there are restrictions on cryptocurrency. The primary reason for this decision is local legislation that prohibits or significantly complicates cryptocurrency transactions. For Ukraine and 48 other jurisdictions, this means that the distribution of funds may be blocked, and attempts to make payments could result in legal consequences for the company.
“Today, some creditors of FTX Recovery Trust reside in jurisdictions where laws and regulations still impose restrictions on cryptocurrency transactions. Distributing funds in such jurisdictions, in violation of these legislative restrictions, could lead to fines and penalties.”
Overall, these 49 countries account for about 5% of all authorized claims for payments. The largest market among them is China, with its users accounting for 82% of all disputed claims. In addition to Ukraine, the list also mentions Pakistan, North Korea, Iran, Iraq, and Belarus.
What Awaits Ukrainian FTX Users
After the court approves the procedure, FTX Recovery Trust will send a notification to each creditor affected by the restrictions. This notification will outline the reasons for the denial of payment and set a minimum period of 45 days for filing an objection. During the review of disputed claims, all payments for such users will be suspended.
If the dispute is not resolved within this time, the withheld amounts along with accrued interest will be returned to the general fund for further payments. FTX claims that it will do everything possible to organize the distribution of funds even in restricted jurisdictions, but the situation remains complicated due to legislative barriers.
In the comments on a post by one of the creditors, Sunil Kawuri, many users stated that they have already consulted lawyers. Some of them accuse the exchange’s management of misappropriating client funds.
As a reminder, the second round of compensation payments began on May 30, 2025, and to receive funds, users had to undergo authorization and choose a provider.