FTX withdraws motion seeking to limit repayments in China, Russia and other restricted jurisdictions

FTX has withdrawn its controversial motion that proposed a "Restricted Jurisdiction Procedure" for evaluating compliance in 49 jurisdictions, including China and Russia, where repayments might be challenging due to local regulations. This procedure could have led to the forfeiture of customer claims in those areas, which accounted for about $800 million in claims, or 5% of the estate's estimated distributions, with China representing 82% of that value. The motion faced opposition from creditors, particularly a group of Chinese claimants. The withdrawal was made without prejudice, meaning the trust might refile the motion later. Separately, FTX founder Sam Bankman-Fried recently claimed FTX was "never insolvent" in a document published last week, while he awaits an appeal hearing.

(Source：The Block)