FTX Freezes $470 Million Overseas Claim, Sparks Major Opposition, Requests Extension to Respond to Creditors
BlockBeats News, July 22nd - According to a court document reviewed by Cointelegraph, the management team of the bankrupt cryptocurrency exchange FTX is seeking an extension in a Delaware court to respond to over 90 objections raised against its proposed "Freeze Partial Foreign Jurisdiction Repayment" approach.
This document, titled "Motion for Leave," was submitted on Sunday, aiming to give the FTX team more time to prepare their argument for why payments to so-called "Restricted Jurisdiction" creditors should be paused. The court has scheduled a hearing for Tuesday regarding the initial motion that sparked the controversy. The FTX management team stated in the motion: "Due to the large volume of objections received around the objection deadline, the FTX Recovery Trust needs additional time to draft, finalize, obtain approval, and submit responses."
The initial motion submitted by the FTX management team sought to halt payments to creditors from countries with unclear crypto laws or restrictive regulations. They argued that making payments to residents of these countries could "trigger fines and penalties, including personal liability for directors and officers, and may even result in criminal penalties, including imprisonment."
This decision will impact creditors from 49 countries, involving a total of $470 million in claims. Among them, Chinese residents make up the largest affected group, accounting for 82% of the total claims from the so-called "Restricted Jurisdictions," amounting to approximately $380 million. The FTX management team's decision to freeze repayments has drawn strong criticism from some creditors. Among them, creditor representative Weiwei Ji stated that they are representing hundreds of Chinese creditors in the protest.
You may also like

Polymarket vs. Kalshi: The Full Meme War Timeline

Consensus Check: What Consensus Was Born at the 2026 First Conference?

Resigned in Less Than a Year of Taking Office, Why Did Yet Another Key Figure at the Ethereum Foundation Depart?

Russian-Ukrainian War Prediction Market Analysis Report

Ethereum Foundation Executive Director Resigns, Coinbase Rating Downgrade: What's the Overseas Crypto Community Talking About Today?

Who's at the CFTC Table? A Rebalancing of American Fintech Discourse
AI Trading vs Human Crypto Traders: $10,000 Live Trading Battle Results in Munich, Germany (WEEX Hackathon 2026)
Discover how AI trading outperformed human traders in WEEX's live Munich showdown. Learn 3 key strategies from the battle and why AI is changing crypto trading.
Elon Musk's X Money vs. Crypto's Synthetic Dollars: Who Wins the Future of Money?
How do Synthetic Dollars work? This guide explains their strategies, benefits over traditional stablecoins like USDT, and risks every crypto trader must know.

The Israeli military is hunting a mole on Polymarket

Q4 $667M Net Loss: Coinbase Earnings Report Foreshadows Challenging 2026 for Crypto Industry?

BlackRock Buying UNI, What's the Catch?

Lost in Hong Kong

Gold Plunges Over 4%, Silver Crashes 11%, Stock Market Plummet Triggers Precious Metals Algorithmic Selling Pressure?

Coinbase and Solana make successive moves, Agent economy to become the next big narrative

Aave DAO Wins, But the Game Is Not Over

Coinbase Earnings Call, Latest Developments in Aave Tokenomics Debate, What's Trending in the Global Crypto Community Today?

ICE, the parent company of the NYSE, Goes All In: Index Futures Contracts and Sentiment Prediction Market Tool
