FTX Creditor Motion to Limit Crypto Payouts to 49 Foreign Jurisdictions, Including Africa, Withdrawn

The bankruptcy estate of the now-defunct crypto exchange, FTX, has withdrawn its motion to impose limits on payouts to creditors in selected “restricted foreign jurisdictions.”

The FTX Recovery Trust filed a notice formally withdrawing its request to adopt special procedures for jurisdictions including China – where about $380 million in claims are held The notice made clear that the withdrawal is “without prejudice,” and that if the Trust decides to seek the relief again, it will do so by filing a new motion and providing notice in accordance with applicable rules.

As reported by BitKE, the motion had originally been filed in early July 2025, asking the court to approve measures to freeze payouts to creditors in 49 countries, including:

• China
• Egypt
• Nigeria
• Saudi Arabia
• Russia, and
• Zimbabwe

citing “unclear, inconsistent or restrictive crypto laws” in those jurisdictions.

Affected claims amount to roughly 5% of total allowed claims, with China alone accounting for a whopping 82% of that frozen value.

While the withdrawal is seen as a victory for affected creditors, some caution against premature celebration. One creditor, Weiwei Ji (known on X as “Will”), wrote:

“This is a victory for all potentially affected creditors. But until you receive the compensation you’re owed, stay vigilant and keep acting together.”

As reported by BitKE in July 2025:

“While retail debtors in eligible regions may receive their full entitlements, others – most notably in China and Nigeria – must endure delays, complex court procedures, and potentially permanent loss of reclamation rights.

The outcome could set a significant precedent for how future crypto bankruptcies handle cross-border asset recovery.”

Creditors had filed at least 70 objections in bankruptcy court following the motion’s July 2025 submission.

Additionally, creditor-representative, Sunil Kavuri, warned that the value of distributions may fall well short of expectations, especially since payouts are being made in fiat rather than cryptocurrency.

He pointed out that the originally announced 143% fiat repayment does not account for losses measured in crypto terms.

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