FTX requests from the Court to delay payments in 49 countries with regulatory inconveniences

Banking heritage of FTX He requested more time before the Court of Delaware to respond to more than 90 objections against his plan to suspend payments in foreign jurisdictions.

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• The application seeks to stop refunds in countries with ambiguous or restrictive crypto laws, including China.
  
• Chinese residents represent USD $ 380 million of the total of USD $ 470 million in affected claims.
  
• Some creditors fear that the decision will carry their claims to value USD $ 0.

Ftx, Exchange in bankruptcy, has presented a “Extension motion” In a delaware court in order to obtain more time to respond to more than 90 formal objections presented by creditors who oppose the suspension of payments in certain foreign jurisdictions.

The application, registered last Sunday, July 20, arises as part of the hearing scheduled for this Tuesday, where the original motion generated by the legal conflict will be discussed. According to the document, the recovery trust of FTX He argues that the volume and complexity of the objections have hindered an adequate response in the initial deadlines.

“Given the high volume of objections received until and after the deadline, the FTX Recovery Trust required additional time to write, finish, obtain approval and present your answer”the legal team wrote in the official document.

Why do you want FTX stop payments in certain jurisdictions?

The original motion motion seeks to avoid reimbursements to users in countries with restrictive or unclear regulations on cryptocurrencies. According to the legal argument of Ftx, The process of sending funds to these territories could involve serious legal consequences, including possible sanctions, fines, and even criminal responsibility for managers.

Among the 49 jurisdictions listed as “Restricted” Countries with little friendly laws are included towards cryptoactive. China represents the most significant case: Chinese residents make up 82% of the total claims in these jurisdictions, which is equivalent to USD $ 380 million of the USD $ 470 million.

The legal team fears that the fulfillment of payments in these regions can expose to the equity to legal consequences such as prison sentences or onerous fines by local regulators.

Reactions and tensions between creditors

The objections to the motion were swift. Creditors from various parts of the world, particularly from China, have expressed their rejection of the attempted heritage to block reimbursements. Among them is Weiwei Ji, who claims to represent hundreds of Chinese creditors in this legal dispute.

Other community members also expressed their discontent. A user under the pseudonym “Mr. Purple” warned that the situation “It’s worse than it seems”. According to him, if the judge approves the motion of Ftx, The claims of these creditors are highly likely to end up using “USD $ 0”. He added that selling the complaint rights now “could” Avoid that destination, but without guarantees.

Uncertainty about the future of claims persists

The reimbursement process of FTX It began in February 2025, more than two years after its collapse in November 2022. Although some creditors have already received payments, a large part of the claims remains without resolution. According to creditor Sunil Kavuri, there are still around USD $ 1.4 billion in claims pending some decision.

The current motion reflects the complexity of the case and the multiple risks associated with cross -border refunds in a fragmented regulatory environment. Although FTX He has recovered a significant part of the assets under his control, the way he will distribute them remains a cause for controversy and legal dispute.

The next few days will be crucial to determine whether the judge of the bankruptcy court in Delaware access to the request for more time of the trust of the trust of FTX and, subsequently, if the suspension of payments to creditors in countries considered “restricted” will be effectively allowed.

The global crypto community, and especially the thousands of affected users in China, will be carefully observing what happens in the courtroom on Tuesday.

Article written by a content editor. Edited by Angel Di Matteo / Diariobitcoin

Original image of Diariobitcoin, created with artificial intelligence, for free use, licensed under public domain

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