During the hearing, the Judge challenged Sullivan & Cromwell @sullcrom (representing the @FTX_Official Recovery Trust) on their attempt to advance a motion restricting distributions to certain jurisdictions.

The Judge argued it is too early to exclude valid claims only because of Restricted Jurisdictions, stressing that such measures should only be a last resort once the legal and regulatory framework becomes clearer. She emphasized that the law could evolve by the time the case concludes, making premature exclusions unfair.

Sullivan & Cromwell suggested they could proceed cautiously - acknowledging the court’s concerns - by waiting for further clarity, though they noted that for restricted jurisdictions, the claims remain not approved and will not be paid in the next distributions.

In the meantime, the Judge stated that creditors remain free to sell their claims or change jurisdictions while the issue is unresolved, given that any change in the law or the development of the case will take time.

The next steps will involve the Trust to monitor legal developments and hire external legal advisors to seek legal opinions before reconsidering the motion at a later, more appropriate stage.

#FTX #FTXbankruptcy $BTC $SOL $FTT