FTX to pay $900M July 31; 45 jurisdictions risk forfeiture

FTX will distribute roughly $900 million on July 31 to holders of allowed claims who completed identity checks and onboarding by the June 16 record date, according to the platform’s distribution dashboard FAQ. Eligible claimants in Classes 5A, 5B, 6A, 6B and 7 who met those requirements should receive funds from BitGo, Kraken or Payoneer within one to three business days after July 31.

To qualify for the July 31 payment, a claim must be allowed under the plan process and the original holder must have cleared KYC by June 16. Claimants also needed a valid tax form, successful provider onboarding and completed sanctions screening by that date, the FAQ notes.

Payments will be routed through the three approved providers rather than paid directly by FTX. Once a creditor completes onboarding with a provider the choice is final and distributions cannot be split across multiple providers. By onboarding, a claimant authorizes FTX to pay the selected provider and waives the option to receive cash directly from FTX. Questions about funds held in provider accounts must be taken up with the provider’s support team. Even when the FTX portal shows an available option for a residence, the provider makes the final decision on whether to accept and onboard the claimant.

FTX’s provider-eligibility page, dated May 22, lists 45 jurisdictions whose residents could not select a distribution provider at that time. The roster includes 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, Nepal, North Korea, Qatar, Russia, Rwanda, Saudi Arabia, Somalia, Sudan, Syria, Tunisia, Ukraine and Western Sahara. The page cautions that provider coverage may change and additional options could be added.

When no provider can service a claimant’s jurisdiction, FTX will defer the distribution for that claim. Affected creditors must monitor the FTX Customer Portal and their email for updates and successfully onboard with a provider once coverage becomes available before payment can occur. Missing the June 16 onboarding cutoff disqualifies a claimant from the July 31 payment; later provider coverage cannot restore that specific payment but may allow a later distribution subject to onboarding and the plan’s deadlines.

FTX’s FAQ also warns that an allowed-claim holder who does not successfully onboard within six months from July 31 may forfeit the right to distributions on that claim. The plan’s published cumulative distribution percentages, such as 105% for Classes 5A and 5B, 103% for Classes 6A and 6B, and 120% for Class 7, measure recovery against the allowed claim amounts under a court-approved conversion table, not current market values of the underlying digital assets.