News with the tag "FTX Bankruptcy"

FTX customers have filed an updated class action lawsuit against law firm Fenwick & West, alleging it played a key role in the $8 billion fraud by creating fraudulent corporate structures and enabling the misuse of customer funds.

FTX will begin its next round of cash payouts to creditors on September 30, 2025, after reducing its disputed claims reserve by $1.9 billion, while facing opposition from a Chinese creditor over global payout restrictions.

A Chinese FTX creditor is challenging a plan that could block payouts in 49 jurisdictions, claiming $15 million across four KYC-verified accounts and arguing the classification based on passport is unfair.

FTX is seeking court approval to dispute claims from 49 restricted jurisdictions, with Chinese users accounting for 82% of the total value despite constituting only 5% of allowed claims, while facing legal hurdles in distribution.