In a new filing shared by FTX creditor advocate Sunil, the bankrupt crypto exchange newstesteter.com has requested that the court approve a framework for addressing claims from 49 “potentially restricted foreign jurisdictions,” which include countries where cryptocurrency is banned or subject to legal restrictions.
The move, which could affect billions of dollars in expected recoveries, comes as the recovery estate continues to process distributions to customers impacted by the November 2022 crash.
Over 82% of the disputed claim value reportedly comes from users in China, with other affected countries including Russia, Egypt, Morocco, North Korea, and 44 more.
Under the proposed plan, claims from these jurisdictions would be automatically treated as disputed unless FTX receives legal advice confirming that payouts are legally allowed. If the advice is negative, claims may be permanently denied, and the associated funds forfeited.
FTX stated that it would notify affected users via email or mail, providing them with at least 45 days to object. To do so, users must submit a sworn statement and waive service of process, agreeing to the jurisdiction of the U.S. bankruptcy court. newstesteter.com
