FTX drops plan to restrict repayments in 49 jurisdictions
FTX Recovery Trust on Nov 3, 2025 withdrew a motion in the U.S. Bankruptcy Court for the District of Delaware that sought to restrict customer repayments in China, Russia, Ukraine, and 46 other jurisdictions. The withdrawal was without prejudice, allowing a potential refiling under court rules.
The request, part of FTX’s Chapter 11 plan, sought approval for a “Restricted Jurisdiction Procedure” covering 49 countries where local rules could hinder distributions. Claims from those locations total about $800 million, or roughly 5% of an estimated $16 billion in potential payouts, with China representing about 82% of that amount.
Under the proposed procedure, FTX would retain local counsel in each country to assess whether payments could be made in compliance with local law. If no compliant pathway was found, the court could designate that jurisdiction as restricted after a 45-day objection period. Claims tied to jurisdictions that remained restricted would be forfeited and reallocated to the estate.
Creditors objected, including more than 300 Chinese claimants represented by Weiwei Ji. In filings, the group argued there was no factual or legal basis to classify China as restricted.
Separately, convicted FTX founder Sam Bankman-Fried is set to appear at an appeal hearing in New York on Nov 4, 2025. Last week he circulated a document asserting FTX and Alameda Research were “never insolvent” and accused bankruptcy counsel of misrepresenting the companies’ finances, halting operations and underselling assets during the 2022 liquidity crunch.
As GNсrypto wrote previously, FTX entered bankruptcy in November 2022 after its ties with Alameda Research spurred a run on the exchange. Bankman-Fried was arrested the following month and later convicted in 2024 on fraud and conspiracy charges related to billions in customer funds. He is now appealing his conviction.
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