FTX Pauses Payouts in 49 Countries Amid Legal Challenges

Edited by: Elena Weismann

On July 2, 2025, the FTX Recovery Trust moved to halt repayments to residents in 49 countries due to regulatory concerns. This decision, which affects approximately 5% of the total claims, has sparked legal challenges, particularly from Chinese creditors. (Source: News article)

Weiwei Ji, representing over 300 Chinese creditors, has filed an objection, arguing that settlements in U.S. dollars are standard and that crypto distributions are legal in China. The paused payouts include China, Russia, and Ukraine. China alone accounts for 82% of the frozen claim value. (Source: News article)

Repayments began on February 18, 2025, with the "Convenience Class" receiving full repayment plus 9% annual interest. FTX has added Payoneer as a repayment channel, effective after May 30, 2025, but excludes creditors in China, Nigeria, Russia, and Egypt. Affected creditors have at least 45 days to object or forfeit their claims. (Source: News article)

Sources

  • Cointelegraph

  • Chinese creditors push back against FTX's motion to forfeit payouts in restricted jurisdictions

  • Chinese creditor challenges FTX motion to halt payouts in restricted countries

  • FTX Recovery Trust says payouts may be forfeited in ‘restricted’ jurisdictions like China and Russia

  • FTX continues to exclude Nigeria and China in remaining creditor repayments but includes Payoneer

  • FTX Bankruptcy May Exclude Users in 49 Regions

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