FTX payouts in Saudi Arabia, Qatar and Kuwait: why Step 8 is blocked and what you can do

Are Saudi Arabia, Qatar and Kuwait on FTX's restricted list?

Yes. FTX's support page "General Information on Distribution Service Providers" (updated 2 October 2026) says: "As of October 1, 2026, the following jurisdictions are not eligible for distributions and creditors resident in those jurisdictions cannot select Distribution Service Providers in the FTX Customer Portal." Saudi Arabia, Qatar and Kuwait are three of the 44 jurisdictions on that list. FTX adds: "The FTX Debtors are continuing to assess eligible jurisdictions."

In practice, Step 8 of the portal offers no provider to a resident of these three countries. Keep your KYC and the tax form (Step 7) complete, so nothing else holds the claim back if a route opens.

All three were also among the 49 jurisdictions in Exhibit B to the FTX Recovery Trust's motion of 2 July 2025 on "potentially restricted foreign jurisdictions" (D.I. 31148). The motion said these jurisdictions represented about 5% of the projected total value of potentially allowed claims. The Trust withdrew it without prejudice on 3 November 2025 (D.I. 33439), so it can be filed again.

And in the Bahamas (PwC) process?

All three are restricted there too. PwC's page "Potentially Restricted Foreign Jurisdictions" for FTX Digital Markets (last modified 15 October 2026) lists 46 jurisdictions: FTX's 44 plus Pakistan and Zimbabwe. The UAE, Bahrain, Oman and Jordan are not on it. PwC says it is "unable to provide any details on timelines or likely outcomes at this stage".

Why payouts to these countries are blocked

FTX publishes no reasons for any country on its list. What is on record:

• None of FTX's three distribution service providers can be selected by a resident of Saudi Arabia, Qatar or Kuwait in the portal.
• In its 2025 motion, the Trust said that rules in the listed jurisdictions "generally prohibit a person or entity from engaging in any activity related to digital assets". It warned that distributions there "may trigger fines and penalties, including personal liability for directors and officers".
• In all three countries, crypto has no legal recognition, and local financial institutions do not deal in it. The details are under "Rules to know" below.

Our reading:

• The obstacle is the local rules on crypto.
• None of the three countries has opened up since:
• Kuwait banned crypto dealings in 2023;
• Qatar's 2024 digital asset rules exclude cryptocurrencies;
• Saudi Arabia had no specific crypto law as of December 2024.
• We would plan around January 2027 rather than wait for a change.

What happens if you do nothing

• Deferral. FTX: "If a Distribution Service Provider is unable to service your jurisdiction, your distribution will be deferred to a later date."
• The six-month rule.
• FTX's Distributions Dashboard FAQ (updated 13 September 2026) says a holder of an allowed claim who does not complete onboarding with a provider within six months from the 31 July 2026 distribution date may forfeit their right to receive distributions on that claim.
• Six months from that date is about 31 January 2027. That is our calculation; your own FTX notice gives the date that applies to you.
• FTX has not said how this rule applies when a country is blocked.

FTX Step 8 deadline

• Step 7. The tax form must be completed within 90 days of FTX's first notice after each record date. Otherwise that distribution is permanently forfeited.
• No court route today. The 2025 motion was withdrawn and can be filed again. If it is, the forfeiture it proposed could come back.

Your options

1. Wait.

• Keep KYC and Step 7 complete, and check Step 8 every month.
• Waiting costs nothing and can suit small claims.
• The risk is the six-month rule around January 2027.

2. Update your residence, if you now genuinely live elsewhere.

• This option matters more in the Gulf than almost anywhere else, because so many residents are expatriates.
• FTX looks at your country of residence, not your passport:
• an expatriate who has left Saudi Arabia, Qatar or Kuwait for a country that is not on the list may not be restricted;
• so may a Saudi, Qatari or Kuwaiti citizen who lives abroad.
• The UAE and Bahrain are not on the list, and both have licensing regimes for crypto businesses.
• FTX: "Email KYC-Support@ftx.com to request an update to your jurisdiction information"; "the FTX Recovery Trust will evaluate and update your jurisdiction as appropriate."
• Be ready to show proof of your address in the new country, such as a residence permit and a recent utility bill or lease. Then submit a new tax form in Step 7 and select a provider.
• The provider's country must match your KYC country, and the provider runs its own checks. A temporary or borrowed address will fail them.

3. Sell the claim to Paxtibi.

• We buy the claim and file the transfer with the US court under Bankruptcy Rule 3001(e).
• You are paid at signing.
• After the 21-day notice period, future distributions go to us.

4. Payment processing.

• If you want to keep the value of future distributions, you transfer the claim to Paxtibi under a written agreement.
• When FTX pays, we forward the funds to you.
• We charge a success fee on the recovered amount. If FTX does not pay, we earn nothing.

You choose between options 3 and 4. We explain both before you decide.

What not to do:

• pay anyone who promises to "unblock" your country;
• share your FTX portal login, seed phrases or private keys;
• use someone else's address or documents for KYC.

All 44 restricted jurisdictions, including Egypt and the other countries of the Middle East and North Africa: see FTX restricted jurisdictions 2026.

Rules in Saudi Arabia, Qatar and Kuwait to know

General information, not legal or tax advice.

1. Saudi Arabia: crypto has no legal recognition.

• In 2018, a government awareness committee that includes the central bank (SAMA) warned of "significant risks" in trading virtual currencies.
• In 2019, the Ministry of Finance said virtual currencies are "neither legally recognized nor regulated by any official entities in Saudi Arabia".
• Local financial institutions do not trade them. Holding crypto is not explicitly prohibited, but as of December 2024 there was no specific crypto law (Library of Congress).

2. Saudi Arabia: tax. Income tax is not imposed on an individual's earnings that come only from employment. Other income is taxed under the rules for businesses (PwC, reviewed 29 July 2026).

3. Qatar: financial institutions may not trade crypto.

• Qatar Central Bank Circular No. 6 of 2018 prohibits all financial institutions in Qatar from trading in cryptocurrencies.
• In 2019, the Qatar Financial Centre's regulator prohibited virtual asset services in or from the QFC.
• The QFC's 2024 Digital Assets Regulations exclude cryptocurrencies (Library of Congress).

4. Qatar: tax.

• Salaries are not taxed.
• An individual's gains on real estate and securities are exempt, unless they are part of a taxable activity (PwC, reviewed 17 September 2026).
• An FTX claim is neither real estate nor a security, so ask a tax adviser.

5. Kuwait: a full ban since 2023.

• Circulars of July 2023 from the Central Bank of Kuwait and the Capital Markets Authority (Circular No. 10 of 2023) apply to financial institutions and other regulated businesses.
• They prohibit using virtual assets as a means of payment and dealing in them as an investment.
• They also prohibit licensing virtual asset services and all crypto mining.

6. Kuwait: tax. There is no personal income tax in Kuwait, and individuals do not file income tax returns (PwC, reviewed 22 July 2026).

7. An FTX claim is not a token. It is a claim in a US bankruptcy case, valued in US dollars. Ask a tax adviser in your country of residence how a sale of the claim is treated in your case.

FAQ

Can residents of Saudi Arabia, Qatar or Kuwait receive FTX distributions in 2026?

Not directly. As of 1 October 2026, all three are on FTX's list of jurisdictions that are not eligible for distributions, so Step 8 of the portal offers no provider. The claim itself remains; FTX says the distribution is deferred.

I am an expatriate in the Gulf. Does the restriction depend on my passport?

No. FTX looks at your country of residence in KYC, not your passport. If you live in Saudi Arabia, Qatar or Kuwait, you are restricted whatever your nationality. If you have genuinely moved to a country that is not on the list and your KYC shows it, the restriction does not apply to you.

Is the UAE restricted?

No. The UAE, Bahrain, Oman and Jordan are not on FTX's list or PwC's list. If you genuinely live in one of them and your KYC shows it, you are not restricted. The provider still runs its own checks.

What is the deadline for FTX creditors in Saudi Arabia, Qatar and Kuwait?

FTX's FAQ says a holder who does not complete Step 8 within six months from the 31 July 2026 distribution date may forfeit their right to receive distributions on the claim. That is about 31 January 2027. FTX has not said how this applies when a country is blocked.

Can I sell an FTX claim from Saudi Arabia, Qatar or Kuwait?

Yes. Paxtibi buys FTX claims, and the transfer is filed with the US court under Bankruptcy Rule 3001(e). You are paid at signing. If you prefer to keep the value of future distributions, payment processing is the alternative.

Sources

• FTX, General Information on Distribution Service Providers (updated 2 October 2026)
• FTX, Distributions Dashboard FAQs (updated 13 September 2026)
• PwC, Potentially Restricted Foreign Jurisdictions, FTX Digital Markets (modified 15 October 2026)
• FTX Recovery Trust motion on potentially restricted foreign jurisdictions (D.I. 31148, 2 July 2025)
• Exhibit B to that motion, list of 49 jurisdictions
• Notice of withdrawal (D.I. 33439, 3 November 2025)
• Library of Congress, Regulation of Cryptocurrencies in the GCC Countries, Part One: UAE, Saudi Arabia, Bahrain (14 January 2025)
• Library of Congress, Regulation of Cryptocurrencies in the GCC Countries, Part Two: Qatar, Kuwait, Oman (15 January 2025)
• Kuwait Capital Markets Authority, Circular No. 10 of 2023 on virtual assets (17 July 2023)
• PwC Worldwide Tax Summaries, Saudi Arabia, taxes on personal income (reviewed 29 July 2026)
• PwC Worldwide Tax Summaries, Qatar, taxes on personal income (reviewed 17 September 2026)
• PwC Worldwide Tax Summaries, Qatar, income determination (reviewed 17 September 2026)
• PwC Worldwide Tax Summaries, Kuwait, tax administration (reviewed 22 July 2026)

This page is general information, not legal or tax advice. Paxtibi buys FTX claims and offers payment processing, so we have a commercial interest in the options described.