Bankrupt crypto exchange FTX has filed a request for a new claim processing framework that could impact creditors from 49 countries where cryptocurrency is restricted.
FTX's Request for New Claims
FTX has filed a motion with the court to establish a new mechanism for processing claims from 49 'potentially restricted foreign jurisdictions,' including countries where cryptocurrency is banned or subject to legal restrictions.
Claims Processing Plan
Under the proposed plan, claims from these jurisdictions would automatically be treated as disputed unless FTX receives legal advice confirming that payouts are legally permitted. If the advice is negative, claims may be permanently denied, and associated funds forfeited.
Community Response and Criticism
Many creditors have expressed dissatisfaction with the latest updates, arguing that the process is unfair. One user on X pointed out that many creditors are excluded solely based on nationality. Others labeled the plan 'fraudulent' and warned of potential consequences for the recovery team if the current proposal moves forward.
FTX's request for a new claims process is pending approval from the bankruptcy court. While aimed at streamlining the claims process, the proposal has sparked considerable criticism among creditors concerned about fairness and legality.
