FTX estate seeks court approval to freeze payouts to creditors in unclear crypto law countries

FTX’s bankruptcy estate is seeking court authorization to freeze distributions to creditors in 49 potentially restricted foreign jurisdictions due to unclear or restrictive crypto laws, including China and Russia. The estate is holding payouts pending resolution but is not blocking them entirely. China accounts for 82% of the affected claims.

Neighboring jurisdictions like Hong Kong have embraced crypto, allowing investment products like derivatives and ETFs. The FTX estate is developing restricted jurisdiction procedures to provide clarity on distributions. While some criticize the approach, others find it reasonable given the legal uncertainties surrounding token distributions in bankruptcy.

Read more at Cointelegraph: FTX Estate Wants Clarity If It Can Send Payouts to China