Krutika Adani
A court filing reveals that FTX has paused creditor claims in banned or restricted regions like China, Nigeria, and Zimbabwe—pending legal clearance.
Though only 5% of claims come from restricted regions, China represents a staggering 82% of the frozen funds, delaying critical settlements.
FTX will issue a Restricted Jurisdiction Notice once a path to legal payment is approved—but until then, no funds will be released.
A Chinese creditor is taking FTX to court, arguing that restrictions on crypto trading don’t justify blocking USD-based settlements via wire transfers.