FTX Risks Legal Backlash For Proposal to Freeze Payouts to Creditors in 49 Countries

Bankrupt FTX has filed a motion in Delaware bankruptcy court requesting permission to freeze assets owed to creditors in 49 countries with uncertain or restrictive cryptocurrency regulations. This decision has raised concerns among creditors, particularly those in China, who are considering legal action against the company. FTX Seeks to Freeze 5% of Claims Over Crypto Laws in 49 Jurisdictions On July 2, FTX asked the court if it could hold back distributions to creditors in 49 jurisdictions where cryptocurrency transactions may be illegal or subject to heavy restrictions. “Today, certain creditors of the FTX Recovery Trust reside in jurisdictions that continue to have laws and regulations that restrict cryptocurrency transactions source: https://beincrypto.com/ftx-plan-to-forfeit-foreign-claims-sparks-backlash/