The FTX estate has filed a motion in court seeking to freeze payouts to creditors in jurisdictions with ambiguous or restrictive cryptocurrency regulations.
Concerns about Payments in Restricted Jurisdictions
On June 28, 2025, the FTX estate requested permission from the US Bankruptcy Court for the District of Delaware to freeze distributions to creditors in 'potentially restricted foreign jurisdictions.'
List of Jurisdictions with Restrictions
The list includes 49 countries with unclear or restrictive crypto laws, including China and Russia, where individuals are generally prohibited from engaging in any cryptocurrency-related activities.
Need for Clarity for FTX
Despite highlighting potentially problematic jurisdictions, FTX is not halting payouts entirely. The recovery trust is seeking clarity regarding the legality of the distributions.
FTX's position on freezing payments to creditors in restricted jurisdictions highlights the necessity of adhering to local laws and resolving legal uncertainties surrounding the company's assets.
