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FTX Repayment Blocked in 49 Regions Due to Crypto Restrictions
The ongoing cryptocurrency exchange FTX has announced that it will be blocking repayments to creditors in 49 regions due to local laws restricting or banning crypto currency trading. The decision was made in a recent court filing and aims to ensure compliance with local regulations.
As of now, the affected jurisdictions include countries such as China, Nigeria, Fiji, Andorra, and Zimbabwe, among others. According to reports, it has been observed that 82% of the frozen value originates from China alone. The decision is expected to impact roughly 5% of the total allowed claims in these regions.
In a statement issued by the FTX Recovery Trust, it was stated that there are regulatory uncertainties surrounding the distribution of funds to residents in these jurisdictions due to local laws. This means that any and all claims from users in these countries will now be classified as “disputed” until further notice.
FTX has put a hold on all claims from restricted countries until legal advice confirms that distributions won’t violate any local laws. The situation has sparked heated debates among creditors, with some expressing frustration at the lack of clarity around their pending repayments.
One affected creditor, Will的折腾纪 (@zhetengji), took to social media to express his discontent. He shared a tweet stating that he is taking legal action against FTX for freezing payouts to users in countries like China, and plans to object at every stage. Will argues that the move is unfair because even though crypto trading may be restricted in these jurisdictions, individuals are still allowed to hold cryptocurrencies and US dollars overseas.
This recent decision by FTX aims to provide clarity on repayments amidst growing regulatory uncertainty surrounding cryptocurrency activities worldwide.
Source: coinpedia.org
