FTX’s New Request
FTX has recently submitted a request to the court, seeking approval for a revised process to handle claims from 49 restricted jurisdictions. Due to local laws and regulations that either prohibit or limit cryptocurrency trading in these regions, making lawful repayments may prove challenging.
Issues with Restricted Jurisdictions
Under FTX’s bankruptcy plan, which has already been approved by the US Bankruptcy Court, around $16.5 billion in assets are to be distributed to 98% of FTX customers at a recovery rate of 119%. However, due to differing legal frameworks in restricted jurisdictions, this same repayment policy cannot be applied universally.
My Point
I remain sceptical of FTX’s intentions. It seems implausible that a US court could offer a globally enforceable solution. FTX was likely aware from the outset that recovery in these regions would be legally difficult, yet it has proceeded to file a petition seeking a resolution in territories beyond US jurisdiction — possibly as a tactic to avoid returning misappropriated assets.
