FTX has announced it will permanently withhold creditor repayments across 49 jurisdictions, triggering heightened worries among stakeholders regarding asset recovery prospects.
The decision affects creditors residing in these unspecified regions and intensifies existing anxieties about the feasibility of reclaiming assets tied to the exchange’s collapse. Stakeholders now face increased uncertainty about repayment timelines and recovery mechanisms.
In related developments, a creditor representative warned that jurisdictions like China risk forfeiting crypto claim rights entirely under this policy. This marks a significant complication in the global resolution process for FTX’s bankruptcy proceedings.
The move contrasts with ongoing repayment efforts in approved jurisdictions and underscores jurisdictional disparities in cryptocurrency bankruptcy resolutions.