FTX Recovery Trust has sought court approval for a new claims process for users from 49 jurisdictions with cryptocurrency restrictions.
Overview of the New Claims Process
The FTX trust proposed the court determine a new claims process for users from 49 jurisdictions where local laws allow for fund recovery. If the court does not validate local laws for payouts, claims may be contested or rejected.
Response from Users in China and Other Regions
Some FTX users from China have expressed concerns about the proposal and are prepared to take legal action. One creditor stated, 'I’ve already contacted my lawyer in New York and am waiting for her response. I will definitely take action and will raise objections at every stage.'
Conditions for Filing Objections
If the court approves the proposal, the trust will issue a 'Restricted Jurisdiction Notice' to each affected creditor. This notice will outline the grounds for the restricted status and provide creditors with a minimum of 45 days to file objections. Failure to file by the deadline will result in automatic forfeiture of the claim.
The FTX Recovery Trust's request for a new claims process raises important questions regarding the recovery of funds for users in jurisdictions with cryptocurrency restrictions.
