The succession of FTX requested a court of Delaware to postpone an audience, in order to be able to respond to more than 90 objections deposited against its request aimed at suspending some $ 470 million in reimbursements for creditors. These objections come from parties contesting the will of the succession to block payments in certain countries subject to complex regulations on cryptocurrencies.
In short
- FTX requests a judicial postponement in order to suspend $ 470 million in reimbursements to creditors, after receiving more than 90 objections.
- The gel targets creditors located in restricted crypto jurisdictions, such as China, Russia or Egypt.
- Creditors express their concerns; Some fear that their claims are completely lost if the postponement is granted.
FTX invokes legal risks to justify the suspension
On Sunday, the platform filed a “exemption motion” in order to obtain more time to formulate its answers. This period would allow the succession to prepare a solid legal defense within the framework of its request for suspension of reimbursements to creditors to “limited jurisdictions”. It argues that the volume and complexity of objections require in -depth and rigorous responses.
Initially, the succession sought to suspend payments to countries where legal frameworks on digital assets are vague or excessively strict. It evokes the potential legal consequences as main justification for this frost.
Performing payments to people located in these jurisdictions could expose administrators to significant sanctions, including fines, legal actions or even criminal proceedings. By freezing reimbursements in these areas, the succession intends to protect its managers from potential legal responsibilities.
China on the front line of the funds freeze
The total amount concerned amounts to around $ 470 million. China alone represents nearly $ 380 million, or about 82 % of the total. Among other countries identified as at high risk are Russia, Egypt and Ukraine, within a list of 49 nations deemed sensitive by the succession for dollar payments.
The initiative has aroused the concern of many creditors. One of them, Zhetengji, said that after having carefully studied FTX's overall response to objections, he works tirelessly to formulate his, and plans to send it to its lawyers.
Since this morning, I haven't taken a single break after seeing FTX's response. I just finished the full examination of the file and writing my answer. I am organizing it before sending it to my lawyers. They have just woken up and may not have enough time to prepare for it. I hope they can still represent me.
Another creditor, known by the pseudonym of Mr. Purple, warned the seriousness of the situation. According to him, if Owens judge validates the motion of the succession, many claims could lose any value. He also mentioned the possibility of selling his receivables to limit losses, while specifying that this solution remains uncertain and without guarantee.
The reimbursements have started, but the uncertainties remain
FTX began reimbursements in February 2025, more than two years after its collapse at the end of 2022. The amounts vary according to the type and size of the receivables. Those less than $ 50,000 are reimbursed up to 120 % of their approved value, representing a slight bonus compared to the initial amount.
On the other hand, creditors holding claims above $ 50,000 have, to date, received 72.5 % of their initial amount. The 27.5 % balance is supposed to be paid during the next distribution phase, scheduled for the fourth quarter of 2025, between October and December.
However, the Sunil creditor activist warned that The reimbursement calendar could stretch Until 2026, even 2027.
The succession hopes to obtain from the court an additional period to strengthen its legal position and respond in detail to the objections issued by international creditors. Without this stay, the bankruptcy platform, responsible for losses amounting to several billion, could be forced to revise its reimbursement plan, or even to face new judicial obstacles.
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