One of the FTX creditors under the nickname Sunil revealed on the platform X that the clients from Ukraine, Egypt, Iran, Nigeria, China, Russia, and Saudi Arabia of the bankrupt exchange FTX are not eligible for compensations through the current fund distribution providers — companies BitGo and Kraken.
This decision is effective despite the acknowledgment by FTX that creditors from these countries could have opened accounts in the mentioned services. The reasons for the restriction are not yet known. However, it has already caused a wave of dissatisfaction among the affected depositors.
As we see on the official site, Ukraine is not listed among those eligible for distribution of compensations through BitGo and Kraken.
Let us recall, the cryptocurrency exchange FTX, once one of the largest platforms for trading digital assets, declared bankruptcy in November 2022. Its collapse was caused by financial fraud and massive losses, leaving millions of clients without access to their funds.
The former CEO of the company, Sam Bankman-Fried, received a sentence of 25 years imprisonment for fraud. His former girlfriend Caroline Ellison, who led Alameda Research, a hedge fund of FTX, got 2 years in prison with the confiscation of $11 billion.