FTX withdraws request for 'payment restrictions for creditors of certain countries'…"Possibility of reapplication remains"

The cryptocurrency exchange FTX, which is undergoing bankruptcy proceedings, has withdrawn plans to restrict payments to creditors of certain countries. However, it left open the possibility of resubmitting the same request in the future.

On the 3rd (local time), according to Cointelegraph, the FTX Recovery Trust officially withdrew a filing to stay repayment procedures for creditors in countries classified as 'restricted foreign jurisdictions.'

This action followed criticism of the repayment restriction plan that included creditors from countries such as China. Earlier, the trust had requested court approval in July for payment restriction procedures targeting 49 countries, including China, Saudi Arabia, Russia, and Ukraine, citing unclear or limited cryptocurrency regulations in those countries.

However, the FTX Recovery Trust said the withdrawal "was made while preserving the right to reapply for the same relief in the future." Indeed, the withdrawal document explicitly stated that "the same relief may be sought again if necessary."

Chinese creditor Weiwei Ji said, "This is a victory for all FTX creditors, but we must not lower our guard while we have not yet been repaid."

Another creditor representative, Sunil Kavuri, said, "FTX creditors have not been fully compensated," urging prompt compensation and adding, "the scheduled 143% repayment rate is only based on fiat currency; losses remain large when measured by cryptocurrency value."