Will FTX Claims Include Countries Where Cryptocurrency Activities Are Restricted or Banned?

Key Points

1. The FTX Recovery Trust filed a motion in Delaware’s bankruptcy court to address claim distributions in 49 countries where cryptocurrency trading is banned or illegal.

2. Creditors from China accounted for 82% of the disputed claims, estimated at 5% of the total distribution pool.

3. The Trust is considering legal opinions to determine if distributions can be made to restricted foreign jurisdictions, with disputed claims potentially forfeiting distributions.

4. Some creditors suggest alternative solutions like instant liquidity discounts or wire transfers in fiat currencies, particularly USD, to facilitate settlements.

5. The FTX implosion has negatively impacted the cryptocurrency market, with Solana (SOL) heavily affected, and the Trust currently holds a balance of about $12 billion, largely in SOL.