FTX’s bankruptcy estate has raised concerns about distributing payouts to creditors in countries with strict cryptocurrency regulations. In a motion filed with the US Bankruptcy Court in Delaware, the FTX estate is seeking permission to freeze distributions to creditors in 49 jurisdictions deemed to have unclear crypto laws, including China and Russia. The estate warns that making distributions against local laws could result in fines, penalties, and potential criminal charges for its directors and officers. While the estate has not completely halted payouts to these countries, it is holding distributions until legal clarity is reached. Notably, China's restrictions account for 82% of the asserted claims affected. The estate emphasizes that it is preparing procedures for these jurisdictions to ensure compliance and transparency during the recovery process. Although some community members criticize this cautious approach, others find it reasonable given the legal uncertainties surrounding cryptocurrency distributions in these regions.

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