Author: CryptoSlate
Compiled by Deep潮 TechFlow
DeepOcean Summary: The fifth round of FTX bankruptcy distribution is set to begin on July 31, but only creditors who passed the review by June 16 and completed onboarding with BitGo, Kraken, or Payoneer will receive funds. More challenging, creditors from 45 countries still cannot select any distribution service provider, and if they fail to complete onboarding within the six-month window, they may permanently lose their claim rights.
FTX has prepared approximately $900 million in repayments for July 31, but only creditors who passed the review by June 16 and completed service provider onboarding will receive them.
FTX announced that creditors holding approved claims in categories 5A, 5B, 6A, 6B, and 7 who meet the above conditions should receive payments within 1 to 3 business days starting July 31 via BitGo, Kraken, or Payoneer.
According to the FTX Distribution Dashboard FAQ, claims must be approved, and the original holder must complete KYC before the record date of June 16. Valid tax forms, successful service provider onboarding, and sanctions screening must also be completed by this date.
Who is still being kept out?
As of publication, FTX’s service provider eligibility page still displays the list from May 22, identifying residents of 45 jurisdictions who cannot select a service provider: 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, Nepal, North Korea, Qatar, Russia, Rwanda, Saudi Arabia, Somalia, Sudan, Syria, Tunisia, Ukraine, and Western Sahara.
FTX states that the service provider coverage may change and additional options may be added, so this list is a snapshot in time rather than a permanent ban. Currently, when no available service provider can serve a particular jurisdiction, FTX defers allocation.
Affected creditors must wait for coverage, monitor updates via the FTX customer portal and email, and successfully complete onboarding before receiving payment. Even if the portal displays options based on residency, the service provider retains final authority over onboarding decisions.
The follow-up coverage for payments due by July 31 to participants who failed to complete onboarding by the June 16 deadline cannot be restored. However, a pathway to receive subsequent allocations is available, provided successful onboarding is completed and all program deadlines are met.
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Creditors who have access to a service provider still face a significant choice: distributions cannot be split across multiple service providers, and the selection is irreversible. By opting in, creditors irrevocably waive their right to receive cash directly from FTX and instruct FTX to make payments to the selected service provider. Any questions regarding funds in that service provider’s account will then be directed to the service provider’s support team.
The FTX dashboard FAQ also states that approved claimants who fail to complete onboarding within six months from July 31 may lose their right to the claim distribution. Missing the June 16 deadline blocked this round of payments; failing to complete onboarding within the extended deadline carries a separate risk of forfeiture.
Why is the allocation over 100%?
The cumulative distribution percentages announced by FTX—105% for Classes 5A and 5B, 103% for Classes 6A and 6B, and 120% for Class 7—are not returns relative to current cryptocurrency prices; they represent the percentage of approved claims.
FTX’s claims framework calculates the value of digital asset claims using a court-approved conversion table, so this percentage describes the recovery rate relative to the approved claim amount, not the current market value of the assets.