FTX management has formally requested a delay in repaying approximately $470 million owed to creditors across multiple foreign jurisdictions, according to a filing in Delaware State Court. The motion highlights legal complications in regions with ambiguous or restrictive cryptocurrency regulations as the primary reason for the postponement.
The repayment suspension affects claimants in 49 countries, with Chinese creditors holding the most significant portion at $380 million—representing 82% of the total affected claims. The recovery trust requires additional time to navigate jurisdictional hurdles and ensure compliance with varying regulatory frameworks.
Titled ‘Motion for Leave’, the legal filing aims to extend the timeline for the FTX Recovery Trust to resolve complexities inherent in managing large-scale international repayments. This move underscores the challenges crypto bankruptcies face when addressing cross-border creditor claims under divergent regulatory systems.