The bankruptcy estate of FTX has withdrawn its bid to restrict payouts to creditors in certain foreign jurisdictions like China, after facing pushback from creditors. The motion was filed in July but has now been withdrawn without prejudice, as creditors warned of potential losses due to the payout structure in fiat rather than cryptocurrencies.

A creditor known as Will on X cautioned affected FTX creditors to remain vigilant despite the withdrawal of the motion, emphasizing that compensation is still pending. The decision to freeze payouts in countries with uncertain crypto laws had raised concerns among creditors, with at least 70 objections filed in bankruptcy court within weeks of the motion’s submission.

FTX creditors, including prominent representative Sunil Kavuri, have expressed concerns about the actual value of distributions, which may be lower than expected due to the repayment being in fiat. Kavuri highlighted that the planned 143% fiat repayment does not account for losses in crypto terms, signaling potential discrepancies in the recovery process for affected creditors.

Read more at Cointelegraph.: FTX Estate Drops Motion On Restricted Country Payouts