FTX suspends repayments to 49 countries in dispute! Creditor representative: China is the biggest victim.

Sunil, the representative of FTX creditors, stated today that the FTX bankruptcy estate trust (FTX Recovery Trust) will suspend the distribution of compensation to creditors in 49 countries, citing that "local laws have not yet legalized it." Among them, although the number of affected individuals in China accounts for only 5% of the claims, they represent as much as 82% of the total amount, making them the biggest victims of this freezing policy.

FTX: Restricted countries Disputed claims

49 Jurisdictions -5% allowed claims in restricted countries 82% of value in China

Due to local laws that 1) crypto currency trading is not permitted or 2) distributors not allowed pic.twitter.com/wCEfAOFyaD

— Sunil (FTX Creditor Champion) (@sunil_trades) July 3, 2025

FTX 49 Country Claims Suspension: Regulatory Restrictions as the Main Reason

According to documents submitted by FTX to the Delaware bankruptcy court, the FTX Recovery Trust announced that it will suspend the distribution of funds to 49 "restricted" jurisdictions, including China, Nigeria, Russia, Ukraine, and others, on the grounds that local laws may prohibit cryptocurrency transactions or do not allow the distribution of funds through third-party distribution agents (Distributors).

The above claim will be temporarily marked as "Disputed Claims (Disputed Claims)", and may only be reprocessed after legal issues are clarified.

(FTX second wave of repayments has arrived, how can I withdraw? What are the precautions? )

Detailed Explanation of FTX's Compensation Process for Users in Restricted Countries

According to the documents provided by Sunil, FTX will conduct legal reviews for these 49 countries and send a "(Restricted Jurisdiction Notice)" to each creditor located in restricted areas, detailing the reasons for the restrictions and providing at least a 45-day (Objection Deadline).

If a creditor wishes to raise an objection, they must submit a written statement and accept the jurisdiction and investigation of the U.S. court. If no objection is raised within the deadline, or if the objection fails, the related claim will be deemed automatically waived.

Of course, the success or failure of the final objection still depends on the judgment of the U.S. court, and users may still not be able to obtain the distribution.

China's affected amount accounts for 82%, making it the largest disaster victim.

Although Chinese creditors account for only 5% of the total applications among the 49 countries listed on the restricted list, the proportion of affected funds is as high as 82%. Sunil stated that the trust will conduct compliance analysis sequentially based on the legal status of each country, distributing funds where possible, and treating those that cannot be distributed as "disputed claims" until their validity is confirmed.

Faced with this sudden and unilateral freeze decision, many Chinese users reacted angrily. User @zhetengji stated that he has contacted a New York lawyer and is prepared to file an objection. He questions the logical errors of FTX:

Although cryptocurrency trading is banned in mainland China, the law allows individuals to hold cryptocurrencies. Even with foreign exchange restrictions, Chinese residents can still legally hold dollar assets abroad. So why not support wire transfer settlements?

The identity risk of crypto investors: Is a work visa a new lifeline?

Market observer @_FORAB provided a deeper reminder: "If you plan to invest a large amount of money in the crypto space for the long term, it's best to apply for a work visa from a developed country."

The recent blockade by FTX not only affected mainland China, but also included Macau, making it difficult for many users to file complaints through legal channels. In contrast, those with residency rights in countries like Japan, South Korea, or Europe find it easier to pursue international lawsuits or participate in compensation.

Legal issues unresolved, claims indefinitely: are affected creditors left to fate?

Currently, before the court clarifies the feasibility of the claims in the aforementioned dispute, users can only observe and cannot retrieve any funds. This dispute highlights the compliance dilemma of crypto assets under global judicial fragmentation. Beyond the ideal of decentralization, "judicial accessibility" may gradually become a new indicator of what the crypto community refers to as "safety."

This article states that FTX has suspended repayments to 49 jurisdictions in judicial disputes! Creditor representatives: China has become the biggest victim. First appeared in Chain News ABMedia.