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FTX Freezes $500M in Disputed Creditor Claims from Crypto-Restricted Countries

  • FTX's bankruptcy estate seeks court approval to freeze $500 million in creditor claims from 49 jurisdictions with restrictive or ambiguous crypto laws to ensure legal compliance.
  • China accounts for 82% of the disputed claim value among the flagged jurisdictions despite representing just 5% of the total claims.
  • Affected creditors will receive a 'Restricted Jurisdiction Notice' and have 45 days to file objections; failure to do so could lead to claim forfeiture.
  • The freeze affects $500 million linked to blocked jurisdictions, with distributions to resume only after legal compliance with local laws is confirmed.

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