FTX Reverses Course: Restarts Payments to Russian Users – Bits Media

The interim management team of the insolvent exchange, FTX, has rescinded its application aimed at suspending disbursements to claimants residing in regions with stringent digital currency policies, notably Russia and Ukraine.

FTX Recovery Trust elucidated that the caretaker administration had initially contemplated excluding claims from the bankruptcy assets originating from 49 nations, encompassing Russia, Ukraine, China, Saudi Arabia, and Pakistan—each a nation where debt repayment might result in asset confiscation.

The aggregate sum of reimbursements due to creditors from these 49 territories approximates $800 million, with China representing the lion’s share at 82% ($656 million).

FTX indicated that the submission of the request sparked a barrage of remonstrations, with the U.S. Bankruptcy Court for the District of Delaware receiving in excess of 70 collective legal challenges from aggrieved creditors. The litigations underscored that the suggested limitations present substantial dangers to the crypto sector’s image and erode trust in the impartial allocation of resources among the exchange’s clientele, following its downfall three years prior.

FTX’s significant claimant, Weiwei Ji, acting on behalf of a consortium of 300 Chinese investors, lodged a formal protest against the exchange’s restructuring blueprint, citing bias against creditors in “restricted areas.”

“The disbursement of claims among Chinese creditors does not create a juridical hazard for the trustee or their representatives and constitutes a vital measure in the insolvency procedures,” Ji stated.

Subsequent to the application’s revocation, settlements to creditors will proceed in accordance with the sanctioned arrangement, devoid of any territorial constraints, according to FTX.

Previously, Sam Bankman-Fried, the originator and one-time chief executive of the FTX crypto exchange, attributed the platform’s disintegration to the temporary administration and the law firm Sullivan & Cromwell.

Источник: bits.media