Why FTX creditors in 49 countries may be cut from payouts
The post Why FTX creditors in 49 countries may be cut from payouts appeared on BitcoinEthereumNews.com. FTX is seeking court approval for a new claims process that could affect creditors from 49 jurisdictions where crypto is banned or restricted. In a new filing shared by FTX creditor advocate Sunil, the bankrupt crypto exchange has requested that the court approve a framework for addressing claims from 49 “potentially restricted foreign jurisdictions,” which include countries where cryptocurrency is banned or subject to legal restrictions. The move, which could affect billions of dollars in expected recoveries, comes as the recovery estate continues to process distributions to customers impacted by the November 2022 crash. Over 82% of the disputed claim value reportedly comes from users in China, with other affected countries including Russia, Egypt, Morocco, North Korea, and 44 more. FTX: Restricted countries Disputed claims 49 Jurisdictions -5% allowed claims in restricted countries 82% of value in China Due to local laws that 1) crypto currency trading is not permitted or 2) distributors not allowed pic.twitter.com/wCEfAOFyaD — Sunil (FTX Creditor Champion) (@sunil_trades) July 3, 2025 Under the proposed plan, claims from these jurisdictions would be automatically treated as disputed unless FTX receives legal advice confirming that payouts are legally allowed. If the advice is negative, claims may be permanently denied, and the associated funds forfeited. FTX stated that it would notify affected users via email or mail, providing them with at least 45 days to object. To do so, users must submit a sworn statement and waive service of process, agreeing to the jurisdiction of the U.S. bankruptcy court. If no objections are made by the deadline, or if an objection is resolved against the creditor, the jurisdiction may be officially designated as “restricted.” At that point, any associated claim distributions, including interest, would be forfeited and returned to the FTX Recovery Trust. Even for allowed claims, final payouts depend…
The post Why FTX creditors in 49 countries may be cut from payouts appeared on BitcoinEthereumNews.com.
FTX is seeking court approval for a new claims process that could affect creditors from 49 jurisdictions where crypto is banned or restricted. In a new filing shared by FTX creditor advocate Sunil, the bankrupt crypto exchange has requested that the court approve a framework for addressing claims from 49 “potentially restricted foreign jurisdictions,” which include countries where cryptocurrency is banned or subject to legal restrictions. The move, which could affect billions of dollars in expected recoveries, comes as the recovery estate continues to process distributions to customers impacted by the November 2022 crash. Over 82% of the disputed claim value reportedly comes from users in China, with other affected countries including Russia, Egypt, Morocco, North Korea, and 44 more. FTX: Restricted countries Disputed claims 49 Jurisdictions -5% allowed claims in restricted countries 82% of value in China Due to local laws that 1) crypto currency trading is not permitted or 2) distributors not allowed pic.twitter.com/wCEfAOFyaD — Sunil (FTX Creditor Champion) (@sunil_trades) July 3, 2025 Under the proposed plan, claims from these jurisdictions would be automatically treated as disputed unless FTX receives legal advice confirming that payouts are legally allowed. If the advice is negative, claims may be permanently denied, and the associated funds forfeited. FTX stated that it would notify affected users via email or mail, providing them with at least 45 days to object. To do so, users must submit a sworn statement and waive service of process, agreeing to the jurisdiction of the U.S. bankruptcy court. If no objections are made by the deadline, or if an objection is resolved against the creditor, the jurisdiction may be officially designated as “restricted.” At that point, any associated claim distributions, including interest, would be forfeited and returned to the FTX Recovery Trust. Even for allowed claims, final payouts depend…
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