{"id":35293,"date":"2025-07-04T20:31:51","date_gmt":"2025-07-04T20:31:51","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=35293"},"modified":"2025-07-04T20:31:51","modified_gmt":"2025-07-04T20:31:51","slug":"ftx-wants-to-block-claims-from-49-countries-including-china-users-rage","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=35293","title":{"rendered":"FTX Wants to Block Claims from 49 Countries, Including China: Users Rage"},"content":{"rendered":"
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Bankrupt crypto exchange FTX is asking the court to greenlight a plan that could potentially deny billions in creditor repayments to users in 49 countries where crypto faces legal restrictions.<\/p>\n

This could disproportionately impact Chinese users, who reportedly represent 82% of the affected claim value.<\/p>\n

Navigating Legal Minefields in Restricted Jurisdictions<\/h2>\n

The FTX proposal, detailed in a July 2 court filing<\/a>, is seeking authorization to designate 49 countries, including China, Russia, Afghanistan, and Ukraine, as \u201cPotentially Restricted Jurisdictions.\u201d<\/p>\n

While claims from these regions will be automatically treated as \u201cdisputed,\u201d the FTX Trust will first seek legal opinions for each jurisdiction, and in cases where distribution is deemed legally permissible, payouts will proceed.<\/p>\n

However, where legal advice indicates distributing funds would violate local laws, the Trust will issue a formal notice to affected creditors. These users will then have a 45-day window to file a formal objection, including submitting it to a U.S. court.<\/p>\n

According to the document, if a jurisdiction is ultimately deemed \u201crestricted\u201d and a claimant remains a resident there when repayments are processed, their funds and any associated interest \u201cshall be immediately forfeited and revert to the FTX Recovery Trust.\u201d<\/p>\n

The submission has triggered significant backlash from affected users. While the FTX Recovery Trust is positioning it as a legal compliance issue, others argue it raises serious ethical questions.<\/p>\n

\n

\u201cFTX accepted users from China when things were fine,\u201d wrote one X user. \u201cNow denying their claims entirely because of \u2018restricted jurisdiction\u2019 feels unfair.\u201d<\/p>\n<\/blockquote>\n

He described creditors from the beleaguered countries as \u201cvictims\u201d who still deserved to be repaid.<\/p>\n

Another Chinese claimant, going by the username \u201cWill,\u201d also argued<\/a> forcefully against the rationale:<\/p>\n

\n

\u201cWhile mainland China does not support cryptocurrency trading, residents\u2026 are allowed to hold cryptocurrencies\u2026 The claims process uses USD for settlement\u2026 they are allowed to hold USD overseas. So why isn\u2019t wire transfer settlement supported?\u201d<\/p>\n<\/blockquote>\n

Meanwhile, others expressed despair, with one user asking, \u201cIs there anything that could be done? Or they just steal all of the money?\u201d FTX creditor advocate Sunil suggested<\/a> that selling or transferring the claim to someone in an allowed jurisdiction might be a potential workaround.<\/p>\n

Ongoing Repayments<\/h2>\n

While the controversy rages on, other creditors have been making progress with their payments. As per a July 1 update<\/a>, those with claims under $50,000 have already received 120% payouts, while larger claimants received 72.5% in May. The remaining 27.5% is expected through distributions extending into 2027.<\/p>\n

Meanwhile, the fallout from FTX\u2019s 2022 collapse continues to resolve elsewhere, with most celebrity endorsement lawsuits dismissed, though retired NBA star Shaquille O\u2019Neal settled<\/a> for $1.8 million.<\/p>\n

The post FTX Wants to Block Claims from 49 Countries, Including China: Users Rage<\/a> appeared first on CryptoPotato<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Bankrupt crypto exchange FTX is asking the court to greenlight a plan that could potentially deny billions in creditor repayments to users in 49 countries where crypto faces legal restrictions. This could disproportionately impact Chinese users, who reportedly represent 82% of the affected claim value. Navigating Legal Minefields in Restricted Jurisdictions The FTX proposal, detailed […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-35293","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/35293","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=35293"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/35293\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=35293"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=35293"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=35293"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}