๐จ FTX Recovery Update: Foreign Claims Under Review ๐ผโ๏ธ
The FTX Recovery Trust has asked the court to approve new rules for handling creditor claims from 49 โrestrictedโ foreign jurisdictions โ including:
๐จ๐ณ China
๐ท๐บ Russia
๐บ๐ฆ Ukraine
๐ต๐ฐ Pakistan
๐ธ๐ฆ Saudi Arabia
๐งพ These regions account for ~5% of the $16B in total potential claims.
๐ฅ But get this โ 82% of that 5% is tied to China alone.
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๐ Why it matters:
If approved, FTX could limit or condition payouts to users in sanctioned or restricted areas.
Itโs part of ongoing efforts to streamline the massive $16B+ claims process as the exchange nears the final stages of bankruptcy resolution.
๐ Creditors from restricted regions may need to follow special claim procedures or face claim rejection entirely.
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๐ญ Thoughts? Should jurisdiction limit payout rights in crypto bankruptcies?
Sound off below ๐