FTX is seeking court approval for a specialized claims resolution process concerning creditors in 49 restricted jurisdictions worldwide.
The initiative aims to manage creditor reimbursements while adhering to diverse local regulations across these jurisdictions.
Reports indicate that approximately 82% of disputed claims within the FTX bankruptcy case originate from creditors based in China.
Parallels are drawn to historical crypto insolvencies like Mt. Gox and QuadrigaCX, highlighting recurring complex jurisdictional hurdles.
The FTX Recovery Trust’s proposal includes measures such as potentially freezing or denying claims originating from certain jurisdictions.
This complex situation underscores the significant challenges of navigating varied regulatory landscapes in global crypto insolvencies.
The approach emphasizes ensuring compliance with local laws and preserving the integrity of the restructuring effort, potentially leading to resolution delays.