Representatives of the bankrupt exchange FTX have filed a court motion proposing a new payment procedure for users in ‘problematic’ jurisdictions. This was reported by Sunil Kavuri, a representative of the platform’s largest creditor group.
FTX: Restricted countries
Disputed claims49 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
If the court approves the plan, some users will not receive their funds.
The list includes 49 countries, among them China, Russia, Ukraine, Pakistan, and Saudi Arabia. These jurisdictions account for 5% of the total claims amounting to $16 billion, with 82% of asset value concentrated in China.
The plan involves hiring local lawyers to assess the legality of payments in each of the 49 countries. If experts confirm that the transfer of funds complies with regulations, creditors will receive funds through payment providers such as Payoneer.
If a payment is deemed illegal, the region will be officially designated as a ‘restricted jurisdiction’. Creditors from these countries will have 45 days to contest the decision.
Claims from users in jurisdictions where payments are not possible will be annulled. The funds will be returned to the general pool for redistribution among other users. The FTX team noted that they continue to work on reducing the list of ‘problematic’ countries.
A court hearing on this matter is scheduled for July 22.
An FTX creditor from China, known as zhetengji, stated that he will challenge this decision at every stage. He urged other users to join him, calling the plan ‘absolutely unfounded’.
As reported in April, FTX liquidators rejected nearly 400,000 compensation claims amounting to a total of $2.55 billion.