Why FTX creditors in 49 countries may be cut from payouts
2025-07-06 12:57:45
Main Idea
FTX is seeking court approval for a new claims process that could affect creditors from 49 jurisdictions where crypto is banned or restricted, with over 82% of disputed claims coming from users in China.
Key Points
1. FTX has requested court approval for a framework to address claims from 49 'potentially restricted foreign jurisdictions' impacted by its November 2022 crash.
2. Over 82% of the disputed claim value reportedly comes from users in China, with other affected countries including Russia and Egypt.
3. If legal advice indicates payouts are not allowed in a jurisdiction, claims may be permanently denied and associated funds forfeited.
4. Creditors have 45 days to object to the proposed claims process, with some users criticizing it as unfair and exclusionary based on nationality.
5. FTX filed for bankruptcy in November 2022, leaving over a million creditors in limbo, and founder Sam Bankman-Fried was later convicted on multiple charges.
Description
FTX is seeking court approval for a new claims process that could affect creditors from 49 jurisdictions where crypto is banned or restricted. In a new filing shared by FTX creditor advocate Sunil, the bankrupt crypto exchange has requested that the court approve a framework for addressing claims from 49 “potentially restricted foreign jurisdictions,” which include countries where cryptocurrency is banned or subject to legal restrictions. The move, which could affect billions of dollars in expec...
Latest News
- Orion leads altcoin rally as Solana falters below $1502025-07-06 14:56:24
- AAVE price steady as whales buy, exchange supply plunges2025-07-06 14:16:59
- Satoshi stirs, FTX looks abroad, Brazil central bank hacked | Weekly Recap2025-07-06 13:10:41
- Why FTX creditors in 49 countries may be cut from payouts2025-07-06 12:57:45
- Michael Saylor should not burn his Bitcoin | Opinion2025-07-06 10:22:44