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.