The bankrupt cryptocurrency exchange FTX may block compensation payments totaling around $800 million to clients from 49 countries due to local restrictions on cryptocurrency trading. This decision, disclosed in court documents dated July 2, 2025, is causing disputes among investors. Among the countries affected by the restrictions are China, Russia, Saudi Arabia, and Ukraine. Chinese users have been hit the hardest, accounting for 82% of all frozen claims, amounting to hundreds of millions of dollars.
The FTX Recovery Trust argues that this decision is due to potential legal risks associated with violating local laws where cryptocurrency is banned or its distribution is restricted. Clients will have 45 days to appeal; otherwise, their assets may be confiscated. Experts note that this decision could undermine trust in international cryptocurrency exchanges, especially considering that many investors have already lost funds due to the FTX collapse in 2022.
The situation underscores the complexity of global cryptocurrency regulation and the differences in legislation. While some creditors have already received compensation, users from restricted jurisdictions remain in uncertainty.
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