Representatives of the bankrupt exchange FTX have withdrawn a motion to restrict payments to users from 49 countries, including Russia and Ukraine. This was reported by Sunil Kavuri, a representative of the platform’s largest creditor group.
FTX files motion to withdraw restricted jurisdiction procedure which could have led to a forfeit of these claims
Restricted Jurisdictions: 44 countries incl. China, Morocco, Bangladesh, Colombia, Egypt, Ukraine, Russia
China: 5% Claims: $380m
300 creditors led by @zhetengji… pic.twitter.com/k0TU0TSIQM
— Sunil (FTX Creditor Champion) (@sunil_trades) November 4, 2025
However, the document states that the platform may file a new application.
The plan was initially proposed in July. It aimed to freeze compensations for users from jurisdictions with unclear or restrictive crypto market regulations. Other key provisions included appointing local lawyers to facilitate payments, a 45-day period to contest restrictions, and the annulment of unauthorized claims.
The ‘problematic’ countries account for 5% of the total claims amounting to $16 billion. Meanwhile, 82% of asset value is concentrated in China — $380 million.
During a hearing on July 22, the court rejected the clause on ‘immediate annulment’ of claims and required FTX to revise the plan. The decision was also opposed by 300 Chinese creditors, who argued that the exchange had no legal grounds to include China in the list of such jurisdictions.
Appeal
On November 4, a hearing will take place on a lawsuit filed by lawyers for FTX founder Sam Bankman-Fried (SBF) in the Second Circuit Court of Appeals in New York. They intend to challenge the conviction of the businessman, accused of seven criminal counts, including fraud.
SBF is currently serving a 25-year sentence in a California prison.
According to Bloomberg, Bankman-Fried’s defense argues that he was ‘wrongfully convicted as a result of hasty conclusions by the press, prosecutors, the team that took over FTX after its collapse, and Judge Lewis Kaplan, who issued the sentence.’
The appeal documents criticized Kaplan’s stance. The lawyers pointed to ‘systematic procedural imbalance in favor of the prosecution’ as a key reason for reconsidering the case.
The defense presented the following arguments:
- the suggestion to the jury to continue deliberations on the first day with dinner and transportation arrangements could have influenced the verdict’s objectivity;
- the judge made biased comments regarding Bankman-Fried’s behavior and testimony;
- evidence of FTX’s sufficient assets to cover liabilities was dismissed;
- meanwhile, the prosecution freely claimed embezzlement leading to bankruptcy.
The appeal challenges not only the prison sentence but also the decision to recover $11 billion from SBF. The defense emphasized the absence of malicious intent, pointing to the businessman’s confidence in fully settling with clients.
A separate point of criticism is the preliminary questioning of the defendant without the jury’s presence. The lawyers insist this created unequal conditions for the parties involved.
At the end of October, SBF described FTX as solvent at the time of its collapse and denied allegations of fraud and misappropriation of client funds.