FTX withdraws plan to limit repayments in China, Russia, and other jurisdictions

FTX has withdrawn its controversial motion to restrict customer repayments in China, Russia, Ukraine, Pakistan, and Saudi Arabia — jurisdictions accounting for roughly $800 million in claims. The proposal sought to classify these regions as “restricted” due to compliance difficulties, but strong opposition from more than 300 Chinese creditors led to its withdrawal.

Source The Block

Under the original plan, unresolved claims after a 45-day review period would have been forfeited and redistributed to other creditors. By withdrawing the motion “without prejudice,” FTX preserved the option to refile at a later date if necessary.

Meanwhile, convicted FTX founder Sam Bankman-Fried reiterated his claim that FTX and Alameda Research were “never insolvent.” He accused bankruptcy lawyers of misrepresenting the firm’s financial status, which he says triggered panic and the platform’s collapse in 2022.