FTX Blocks Claims: 49 Countries Affected
#FTX #Block #Claims #Countries #Including #China #Users #Rage #OrxCash
FTX Blocks Claims: 49 Countries Affected
The bankrupt FTX exchange has submitted a proposal to the court, seeking approval for a plan that could potentially deny billions in creditor repayments to users in 49 countries where cryptocurrency faces legal restrictions. This move is expected to disproportionately impact Chinese users, who reportedly represent 82% of the affected claim value.
Navigating Complex Legal Terrain
The FTX proposal, detailed in a July 2 court filing, aims to designate 49 countries, including China, Russia, Afghanistan, and Ukraine, as "Potentially Restricted Jurisdictions." Claims from these regions will be automatically treated as "disputed," with the FTX Trust seeking legal opinions for each jurisdiction to determine the feasibility of distributions. If distribution is deemed legally permissible, payouts will proceed. However, if legal advice indicates that distributing funds would violate local laws, the Trust will issue a formal notice to affected creditors, who will then have a 45-day window to file a formal objection.
Backlash and Ethical Concerns
The submission has triggered significant backlash from affected users, with many arguing that the move raises serious ethical questions. One user pointed out that FTX had accepted users from China when the exchange was operational, and now denying their claims entirely due to "restricted jurisdiction" feels unfair. Another Chinese claimant argued that while mainland China does not support Bitcoin (BTC) trading, residents are allowed to hold cryptocurrencies, and the claims process uses USD for settlement, so wire transfer settlement should be supported.
Ongoing Repayments and Controversy
While the controversy rages on, other creditors have been making progress with their payments. As per a July 1 update, those with claims under $50,000 have already received 120% payouts, while larger claimants received 72.5% in May. The remaining 27.5% is expected to be distributed through 2027. Meanwhile, the fallout from FTX’s 2022 collapse continues to resolve elsewhere, with most celebrity endorsement lawsuits dismissed, and retired NBA star Shaquille O’Neal settling for $1.8 million.
Broader Market Implications
The FTX decision to block claims from 49 countries has significant implications for the broader Ethereum (ETH) and cryptocurrency market. From a retail investor perspective, this move highlights the importance of considering the regulatory environment when investing in cryptocurrencies. As the market continues to evolve, it is likely that we will see more exchanges and platforms taking a cautious approach to compliance, potentially leading to a more fragmented and complex landscape for investors. This could also lead to increased demand for decentralized and Solana (SOL)-based solutions, which prioritize user autonomy and flexibility. Ultimately, the FTX controversy serves as a reminder of the need for greater clarity and consistency in cryptocurrency regulations, as well as the importance of investor education and awareness in navigating this rapidly changing market.
AA News,Crypto News,China,FTX Exchange,Russia
Content in this post was created with the help of automation tools. While we strive for accuracy, always double-check details and use your best judgment.
image source: https://cryptopotato.com/ftx-wants-to-block-claims-from-49-countries-including-china-users-rage/