FTX estate asks court to freeze payouts in ‘restricted’ countries

FTX’s bankruptcy estate is uncertain whether it is legally entitled to distribute payouts to creditors in countries such as China amid local crypto restrictions.

FTX’s bankruptcy estate has raised concerns over payouts to creditors in countries with ambiguous or restrictive cryptocurrency regulations.

On Wednesday, the FTX estate filed a motion with the US Bankruptcy Court for the District of Delaware, seeking authorization for the FTX Recovery Trust to freeze distributions to creditors in “potentially restricted foreign jurisdictions.”

The jurisdictions — 49 countries in total — have unclear or restrictive crypto laws, potentially posing risks due to complex cross-border legal implications.

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