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Sujit Kumar
Jul 4, 2025

FTX Repayments Hit Roadblock in Dozens of Nations Due to Crypto Restrictions

FTX Repayments
FTX, the bankrupt cryptocurrency exchange, has confirmed that creditor repayments are being withheld in 49 jurisdictions globally, a move attributed to stringent local cryptocurrency restrictions or outright bans. This decision, detailed in recent court filings, impacts regions ranging from major economies like China to smaller nations, presenting a complex challenge for the ongoing repayment process.

Geographic Impact and Frozen Funds

The affected regions span across various continents, including countries such as China, Nigeria, Fiji, Andorra, and Zimbabwe. While these 49 jurisdictions collectively represent a relatively small percentage of the total allowed claims (approximately 5%), a substantial portion of the frozen value, an estimated 82%, originates from China. This highlights the significant impact of individual country regulations on the global distribution efforts of the FTX estate. To manage this, FTX has implemented a "hold-and-review" system, classifying claims from these restricted areas as "disputed" until legal counsel can confirm that distributions would not violate local laws. Creditors in these regions will receive specific "Restricted Jurisdiction Notices" outlining the reasons for the hold and providing avenues for objection.

Progress Amidst Payout Complexities

Despite these international hurdles, the overall FTX repayment process continues to advance. Recent updates indicate a positive trend in resolving disputed claims, with the total amount of such claims decreasing from an initial $6.5 billion to $4.6 billion. Over $1.8 billion in previously disputed claims have now been approved, and an additional $2.7 billion is expected to be allowed in the near future, bringing the total value of approved claims to a substantial $8.3 billion. This progress underscores the FTX estate's ongoing efforts to return funds to affected customers, even as it navigates the intricate web of global cryptocurrency regulations.

FTX Repayments Hit Roadblock in Dozens of Nations Due to Crypto Restrictions
Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.

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