The post FTX Ruling Could Let Exchanges Seize Assets Worldwide appeared on BitcoinEthereumNews.com.

Update (July 18, 1:30 pm UTC): This article has been updated to correct the number of filed objections to the motion. The FTX creditor community is awaiting a ruling next week that could let the FTX bankruptcy estate freeze payouts to creditors in “restricted countries,” including China. On Tuesday, the US Bankruptcy Court in Delaware is expected to rule on a motion that could allow the FTX estate to withhold payouts to creditors in 49 countries it has labeled as “restricted jurisdictions.” If the court approves the motion, affected creditors warn of “devastating consequences” that could extend far beyond the FTX case. “This motion isn’t just about FTX creditors. It sets a dangerous precedent that could destroy trust in the global crypto ecosystem,” said Weiwei Ji, a creditor known as Will on X. “Restricted” countries not determined by the court According to Ji, a potential court approval of the FTX estate’s motion regarding the restricted countries could become a standard procedure for similar crypto bankruptcies. “In future bankruptcies, any offshore exchange filing in the US could copy FTX — unilaterally label countries like China as ‘restricted jurisdictions,’ seize users’ assets, and legally refuse repayment,” the creditor said in an X post on Thursday. Source: Weiwei Ji “‘Restricted’ lists aren’t determined by judges. They just need to hire a lawyer to write a memo — and that’s it,” Ji said. Nearly 70 objections filed Since the FTX estate filed the motion on July 2, the proposal has drawn nearly 70 objections as of Friday at 11:00 am UTC, according to court records reviewed by Cointelegraph on Kroll. Most objections originate from Chinese FTX creditors, comprising more than half of the total filings, including objections from Ji. This aligns with China accounting for 82% of the total value of potentially affected claims…

---

Filed under: News - @ July 19, 2025 12:26 am