Over 500 Million USD of FTX Frozen Due to Cryptocurrency Ban

Recently, the FTX Recovery Trust announced that it is freezing 500 million USD in compensation for customers due to global cryptocurrency ban laws. China alone accounts for more than 80%, equivalent to 435 million USD of the frozen funds.

According to court records, strict regulations in 49 countries — where cryptocurrency is banned or restricted — are preventing the recovery fund #FTX from making payments. China has long banned trading and services related to cryptocurrency, but many people still circumvent the law using offshore accounts or VPNs, leading to legal disputes.

In addition, nearly 400,000 compensation requests, worth over 2.5 billion USD, have also been rejected due to KYC (Know Your Customer) regulation violations. The large group alone has lost 1.9 billion USD due to failing to complete mandatory verification steps.

FTX began the second repayment round at the end of May, paying out over 5 billion USD to eligible creditors. However, the process remains very complex and is fraught with potential lengthy disputes.

📌 Note: Investors need to be cautious in complying with legal and KYC requirements when trading cryptocurrencies to avoid losing their right to reclaim assets if the exchange encounters issues! #anhbacong