FTX, the bankrupt crypto exchange, has recently announced the addition of Payoneer to its list of creditors’ repayment options. This move comes as part of FTX’s ongoing reorganization plan, with Payoneer joining BitGo and Kraken as a distribution service provider.
Payoneer, a global payments platform operating in over 190 countries and territories, will help distribute funds to retail customers in eligible jurisdictions. This new option will be available for all future distributions made after May 30, 2025. Customers who choose to use Payoneer for their repayments will need to waive their right to direct US dollar distributions, as funds will be transferred to Payoneer, who will then credit the customer’s chosen bank account. It is important to note that the value received will align with each customer’s entitlement under the plan, regardless of currency.
FTX has recently completed two significant repayment phases, returning nearly $7 billion to creditors across both rounds. While retail investors with smaller claims were repaid in full, larger creditors with claims exceeding $50,000 faced limits on full recovery.
However, despite the addition of Payoneer to the distribution process, FTX creditors in Nigeria and China remain excluded from the repayment process. This exclusion has raised concerns about fairness and transparency in the ongoing asset recovery process, especially considering that creditors from China alone represent 8% of total claims.
Thomas Braziel, a specialist in FTX claims, highlighted that the new distribution channel primarily benefits customers in India, Indonesia, Japan, and select US states where restrictions on crypto custodians had previously blocked payouts. The ongoing lack of access for creditors in key markets like Russia, China, Egypt, and Nigeria underscores the challenges faced in FTX’s global asset recovery efforts.
As FTX continues to navigate its reorganization plan and repayment process, it is crucial for the exchange to address these gaps in asset recovery to ensure a fair and transparent distribution of funds to all creditors.