⚠️ #FTX Recovery Trust Freezes Payouts to 49 Countries — China Hit Hardest
The FTX Recovery Trust has paused payouts to creditors in 49 foreign jurisdictions due to legal uncertainties, according to a July 2 filing to the Delaware bankruptcy court.
🔒 Why the freeze?
🔸 Many of these countries including China, Nigeria, Andorra and Fiji—either ban crypto trading or restrict distribution agents.
🔸 The Trust must confirm releasing funds won’t violate local laws before proceeding.
📝 The process:
🔸 Creditors in affected countries will receive a “Restricted Jurisdiction Notice” explaining the freeze.
🔸 They have at least 45 days to object by submitting a sworn statement accepting U.S. court jurisdiction.
🔸 If no objection is filed or the objection fails, funds plus accrued interest will be forfeited to the estate.
🔸 Distributions stay suspended during disputes, pending court rulings.
💰 Impact by numbers:
🔸 The 49 jurisdictions account for about 5% of allowed claims by number.
🔸 But 82% of the frozen dollar value is held in China, the largest affected market.
⚖️ Next steps:
🔸 The Trust is reviewing each jurisdiction’s legal status.
🔸 Claims from blocked markets remain “Disputed” until resolved and legally approved or denied.
