FTX freezes $500m in distributions tied to China and crypto-restricted nations – DL News
- Global crypto laws are delaying payouts for thousands of FTX creditors.
- China accounts for over 80% of the frozen funds.
- Nearly 400,000 customer claims were disqualified over KYC violations.
China’s crypto crackdown prevents the FTX Recovery Trust from paying out around $435 million to customers caught up in the fallout from Sam Bankman-Fried’s crumbled business empire, according to a Wednesday court filing.
The FTX Recovery Trust said it cannot proceed with payouts to residents of 49 jurisdictions where laws either prohibit or severely restrict crypto activity.
It said global cryptocurrency restrictions are creating even more obstacles, causing over $500 million of an estimated $10 billion in distributions to be frozen.
The filing…
