FTX, a bankrupt crypto exchange, faces scrutiny with over $2.2 billion in disputed claims, raising concerns about fairness and transparency during the repayment process.
After returning over $5 billion in digital assets to creditors in the first phase, FTX began its second round of repayments on May 30. However, unresolved claims worth $2.2 billion remain, according to the FTX Creditor and Customer Ad-Hoc Committee.
Sunil, a committee member, shared updates on X (formerly Twitter) on June 11, revealing that FTX currently holds $6.5 billion in reserves for upcoming distributions.
Cross-border repayments have expanded with the addition of Payoneer as a repayment partner alongside BitGo and Kraken. Payoneer’s support for payments in over 190 countries enhances accessibility for retail customers, except for regions like China, Russia, Nigeria, and Egypt.
Growing concerns about FTX’s Know Your Customer (KYC) process have surfaced, with users facing strict verification requirements. Delays and lack of support responses have hindered the completion of the KYC process for many users.
The ongoing challenges, including disputed claims, KYC bottlenecks, and limitations on cross-border distributions, underscore gaps in FTX’s global repayment strategy. Investors anticipate a potential liquidity boost from smooth repayments but question the platform’s transparency and governance in handling creditor claims.
Note: Investments carry market risks. Please invest carefully. We do not accept responsibility for any financial losses.
