Despite distributing over $5 billion to creditors in its second repayment round, the FTX Recovery Trust continues to face significant hurdles in resolving $2.25 billion worth of disputed creditor claims.
Compounding the challenges, Know Your Customer (KYC) verification issues have caused substantial delays and frustration, with many creditors reporting months-long waits for resolution, directly impacting the receipt of funds.
An additional obstacle affects Chinese creditors, representing approximately 8% of total claims. The lack of a distribution provider operating within China has complicated and delayed repayment processing for this group.
In an effort to improve payout efficiency, FTX recently onboarded Payoneer as a distribution partner alongside existing providers BitGo and Kraken. This partnership aims to streamline digital and fiat currency transfers.
The timely resolution of the disputed claims and the ongoing KYC bottlenecks remains critical for advancing creditor repayments. These issues also represent a focal point for market observers concerned about the overall creditor recovery process.