FTX Continues to Exclude Nigeria and China in Remaining Creditor Repayments but Includes Payoneer
FTX, the insolvent crypto exchange, has added Payoneer to its financial institutions’ repayment options, according to a June 10 statement. The brand-new company would function as an extra asset distribution channel, along with BitGo and Kraken. Payoneer operates a global payments platform across more than 190 countries and territories. Under the agreement, Payoneer will help disperse funds to retail clients in eligible jurisdictions, aligning with FTX’s ongoing reorganization strategy.
This new alternative will be available for all future distributions made after May 30, 2025. FTX clarified that clients choosing this method will waive their right to direct United States dollar distributions. Instead, the insolvent exchange will transfer funds to Payoneer, which will credit the customer’s selected bank account. The company emphasized that the value received will align with each customer’s entitlement under the plan, regardless of currency.
This development follows FTX’s recent completion of two significant payment phases. The exchange returned nearly $7 billion to creditors across both rounds, approximately $1.8 billion in the first phase and $5 billion in the second. Notably, retail investors with smaller claims were mostly repaid in full, while larger financial institutions with claims exceeding $50,000 faced limitations on full recovery.
FTX Creditors in Nigeria and China Remain Excluded
Despite the addition of Payoneer to the distribution process, FTX’s repayment coverage remains inadequate. Thomas Braziel, an expert in FTX claims at 117 Partners, noted that the new channel primarily benefits customers in India, Indonesia, Japan, and select US states where prior restrictions on crypto custodians hindered payments. However, many FTX creditors in key markets like Russia, China, Egypt, and Nigeria continue to be excluded from the ongoing repayment process.
It is worth mentioning that financial institutions from these countries constituted a significant portion of FTX’s user base before its collapse. For instance, FTX’s data indicates that creditors from China alone account for 8% of total claims. The persistent lack of access for these regions underscores ongoing gaps in FTX’s global asset recovery, raising concerns about fairness and transparency as the process moves forward.
