FTX’s Global Creditors Face Payout Exclusion: 49 Countries on the Chopping Block
FTX's bankruptcy saga takes another ugly turn—thousands of creditors worldwide may get nothing.
Who's getting axed?
The restructuring plan quietly sidelines claimants from nearly 50 jurisdictions. Legal loopholes? Or just cost-cutting chaos?
Why this stings:
These creditors—many retail investors—bet big on FTX's 'global' vision. Now they're learning the hard way that crypto's borderless promises have very real borders when the lawyers show up.
The kicker?
Some of the excluded regions helped fuel FTX's rise. Talk about biting the hand that feeds.
Finance as usual: the little guys take the haircut while the suits debate which jurisdictions are 'convenient' enough to pay back.
Community response
Several creditors have raised dissatisfaction with the latest update, arguing that the proposal is unjust. On X, user Nicedy called the process “deeply discriminatory and procedurally unjust,” claiming that many creditors are being excluded based solely on nationality.
“We are not passive victims, nor silent bystanders,” the user wrote, urging FTX’s recovery team and legal partners to establish a fair re-review process.
Echoing the frustration, another commenter called the plan “fraudulent,” saying “FTX literally plans to use the funds from these restricted regions to make up their fund deficit,” warning that collective action from excluded victims could bring “serious consequences” for the recovery team if the current plan proceeds.
The latest proposal is still pending and will require approval from the bankruptcy court before it can be enforced.
The FTX scandal centers on the dramatic collapse of one of the world’s largest cryptocurrency exchanges in November 2022. Founded by Sam Bankman-Fried, FTX misused billions of dollars in customer funds to cover losses at its sister trading firm, Alameda Research.
The company filed for bankruptcy, leaving over a million creditors in limbo. Bankman-Fried was later convicted on multiple counts of fraud and conspiracy, marking one of the most high-profile financial crimes in recent history and shaking trust in the crypto industry.
