The administration of the FTX Recovery Trust said that the payments to creditors of a bankrupt crypto flood in such jurisdictions as China, Nigeria, Fiji, Andorra, Egypt, Iran or Saudi Arabia can violate local legislation and bear potential risks for the fund.
“Compensation to the creditors carried out by the FTX Recovery Trust or on his behalf in jurisdictions with legal restrictions in the field of crypto actual traffic can entail fines and sanctions, including personal liability of directors and officials, as well as criminal prosecution up to imprisonment,” the statement said.
The application indicates that in Macau, for example, all individuals and legal entities are prohibited from engaging in any activity related to digital assets, including trading or distribution of income received from cryptocurrencies among residents of these jurisdictions. In total, 49 jurisdictions are mentioned at the FTX trial, where the use of cryptocurrency is prohibited or strictly limited.
In response to possible sanctions, the temporary administration of FTX Implemented The system of “retention and revision”, in which all claims from countries with regulatory restrictions are now classified as “controversial”. Thus, the FTX Recovery Trust will process such claims only if it is legally proved that the distribution of assets among this category of creditors does not violate local laws.
The FTX exchange began distributing funds to injured clients on February 18, 2025, starting with small creditors whose claims did not exceed $ 50,000. On May 30, the area of the second round of payments, distributing about $ 5 billion among claims with claims worth more than $ 50,000.
Source: Bits
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