FTX Starts Paying Out $900M to Creditors — But Those in 45 Countries Could Lose Everything Within 6 Months
3d ago · 1 source
FTX has begun distributing $900 million in payouts to creditors as part of its ongoing bankruptcy proceedings. However, creditors in 45 different jurisdictions face the risk of losing their claims entirely if they don't act within a six-month window, adding urgency to an already complex global recovery process.
WHY IT MATTERS
Imagine you had money in a bank that went bankrupt, and the bank is finally starting to give some of that money back. That's essentially what's happening with FTX — a major crypto exchange that collapsed in 2022, taking billions of dollars of customer funds with it. Now $900 million is being paid out, which is good news. But here's the catch: if you're a creditor (someone owed money) living in one of 45 countries, you have only six months to file the right paperwork or you lose your claim forever. Think of it like a class-action lawsuit where you have to mail in a form by a deadline — miss it, and you get nothing. This highlights why many crypto experts recommend 'self-custody,' meaning keeping your crypto in your own wallet rather than trusting an exchange to hold it for you.
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