FTX Repayment Blocked in 49 Regions Due to Crypto Restrictions

Key Points

1. The FTX Recovery Trust froze creditor payouts in 49 jurisdictions, disclosed in a July 2 court filing, affecting regions like China, Nigeria, and Fiji.

2. China accounts for 82% of the frozen value, despite these jurisdictions representing only 5% of total allowed claims.

3. FTX implemented a 'hold-and-review' system, classifying claims from restricted countries as 'disputed' until legal advice confirms distributions are permissible.

4. Affected creditors will receive a 'Restricted Jurisdiction Notice' detailing the issue and providing at least 45 days to object.

5. Chinese FTX creditor Will (@zhetengji) is taking legal action against the freeze, arguing it is unfair since FTX is settling claims in USD.

6. Disputed claims have dropped from $6.5 billion to $4.6 billion, with $1.8 billion approved and another $2.7 billion expected to be allowed soon.

7. Total approved claims have reached $8.3 billion.