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FTX Bankruptcy Plan Excludes Users in 49 Countries Due to Regulatory Constraints

New FTX bankruptcy filings reveal that users across 49 jurisdictions may be excluded from compensation distributions due to conflicts with local cryptocurrency regulations. The legal restrictions in these countries prevent the bankrupt exchange from lawfully disbursing funds to affected customers directly through the ongoing claims process.

Notably, over 82% of the total claims submitted originate from residents in these excluded jurisdictions. This regulatory barrier complicates the resolution for a majority of FTX account holders, leaving their compensation prospects contingent on complex legal reconciliations.

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