FTX to pay $900M July 31; 45 jurisdictions may miss payouts

FTX plans to distribute roughly $900 million on July 31 to holders of allowed claims in Classes 5A, 5B, 6A, 6B and 7 who met KYC and onboarding requirements by the June 16 record date. Payments will be routed through BitGo, Kraken or Payoneer and are expected to arrive within one to three business days for qualifying claimants.

To qualify for the July 31 payment, a claimant needed an allowed claim, completion of KYC by June 16, a valid tax form on file, successful onboarding with an eligible payments provider and a passed sanctions screening. FTX’s dashboard FAQ notes that a claimant’s selection of a distribution provider is final and that distributions cannot be split across multiple providers. Once FTX pays the chosen provider, questions about received funds must be directed to that provider’s support team.

FTX’s provider-eligibility page, last updated with a roster dated May 22, lists 45 jurisdictions whose residents currently cannot select a distribution provider. The list 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 (Burma), Nepal, North Korea, Qatar, Russia, Rwanda, Saudi Arabia, Somalia, Sudan, Syria, Tunisia, Ukraine and Western Sahara.

Where no provider can service a jurisdiction, FTX will defer distribution for affected accounts. Creditors in those jurisdictions must monitor the FTX Customer Portal and their email for updates and onboard as soon as a provider becomes available. A provider’s acceptance is required to receive a later distribution; a portal indication of availability does not guarantee onboarding approval by the provider.

Claimants who missed the June 16 onboarding cutoff are not eligible for the July 31 payment, though later onboarding could open a route to future distributions if done before plan deadlines. Separately, FTX’s dashboard FAQ 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 entirely.

FTX announced cumulative distribution rates of 105% for Classes 5A and 5B, 103% for Classes 6A and 6B, and 120% for Class 7. Those percentages refer to recovery against court-approved allowed-claim values, based on a conversion table that translates original crypto holdings into the plan’s allowed claim amounts, not to current market prices.