Catenaa, Thursday, July 10, 2025- The FTX Recovery Trust has filed a court motion proposing a new system for handling creditor claims in 49 “potentially restricted” foreign jurisdictions, raising alarm among users in countries such as China, Russia, Pakistan and Ukraine.
If approved, creditors in these locations could see their claims forfeited unless local legal compliance can be established.
The proposal would allow the trust to hire attorneys in each region to evaluate whether local laws permit distribution. If legal clearance is secured, the trust will process the claims through distribution providers.
If not, the country may be designated as a “Restricted Foreign Jurisdiction,” triggering a 45-day window for objections. Without successful challenges, the affected claims would revert to the trust and be reclassified as “Disputed.”
According to court documents, the disputed regions account for roughly 5% of the \$16 billion in estimated claims, with China representing 82% of the value at risk. A court hearing on the motion is scheduled for July 22.
FTX creditors in affected areas have expressed outrage. One X user, identified as a Chinese creditor, vowed to oppose the measure at every step, calling it “absolutely unreasonable.”
The trust previously added Payoneer as a third distribution provider, bringing the total covered jurisdictions to 93. Despite this, some creditors say their countries remain excluded.
