Payoneer became another channel partner of FTX to distribute creditor repayments, alongside BitGo and Kraken. Payoneer is a global payments platform that is available in over 190 countries. Furthermore, the platform will be used to disperse funds to retail clients under the reorganization plan of FTX. The new option will apply to any distributions going forward after May 30, 2025, and customers who elect this option will forfeit their right to receive US dollar distributions directly.
Great advances in Creditor Repayments
FTX has already undergone two significant repayment steps, having returned almost $7 billion to creditors, about $1.8 billion during the first step and $5 billion during the second one. Smaller creditors who were retail investors were paid back largely in full, whereas larger creditors who had claims of over 50,000 dollars have been restricted on full recovery. The exchange rate moves money into Payoneer. Which then deposits the value in the bank accounts of the customers depending on the plan entitlements in any currency.
Poor Geographic penetration In spite of New Channel
Thomas Braziel, a FTX claims specialist, told The Block that the new Payoneer channel is most useful to customers in India, Indonesia, Japan, and a few states in the U.S where restrictions on crypto custodians had blocked payouts. This addition is somewhat beneficial since most creditors in major markets such as Russia, China, Egypt, and Nigeria. Which will not be able to participate in the current repayment plan. Despite constituting large proportions of the initial FTX user base.
Big Markets Continue to Be Left Out of Process
Before its downfall, large proportions of FTX users hailed from excluded countries, with Chinese users comprising 8 percent of all claims on FTX data. The continuing non-coverage of these territories underlines the ongoing discrepancies in the scope of FTX global asset recovery. Furthermore, the situation can be discussed in terms of equity and clarity when the bankruptcy case is still in progress.
