FTX аннулирует план ограничительных выплат для пользователей из «проблемных» юрисдикций Translation: FTX cancels plan for restricted payouts to users from problematic jurisdictions

Representatives from the bankrupt exchange FTX have withdrawn their request to limit payouts for users from 49 countries, including Russia and Ukraine. This was announced by Sunil Kavouri, a spokesperson for the largest creditor group of the platform.

However, the document indicates that the exchange could submit a new request.

Initially, a plan was proposed in July that called for freezing compensation for users from jurisdictions with unclear or restrictive cryptocurrency market regulations. Other key provisions included appointing local attorneys to facilitate payouts, a 45-day period for contesting restrictions, and the annulment of unapproved claims.

The «problematic» countries account for 5% of the total claims amounting to $16 billion, with 82% of asset value located in China—amounting to $380 million.

During a hearing on July 22, the court rejected the clause regarding the “immediate annulment” of claims and required FTX to revise the plan. This decision was also contested by 300 Chinese creditors, who argued that the exchange had no legal grounds for including China on the list of such jurisdictions.

A hearing regarding the lawsuit filed by attorneys for FTX founder Sam Bankman-Fried (SBF) is scheduled for November 4 in the Second Circuit Court of Appeals in New York. They plan to contest the conviction against the businessman, who has been found guilty on seven criminal counts, including fraud.

Currently, SBF is serving a 25-year sentence in a Californian prison.

As Bloomberg reports, Bankman-Fried’s defense claims he was «unjustly convicted due to hasty conclusions by the press, prosecutors, the team that took over FTX after its collapse, and Judge Lewis Kaplan, who delivered the verdict.»

In the appellate documents, Kaplan’s position has come under fire. The attorneys pointed out the «systematic imbalance in procedural fairness favoring the prosecution» as a key reason for re-evaluating the case.

The defense raised several arguments:

They are contesting not only the prison sentence but also the ruling to recover $11 billion from SBF. The defense emphasized the lack of malicious intent, pointing to the businessman’s belief in his ability to fully settle with clients.

A particular point of criticism is the preliminary questioning of the defendant without a jury’s presence. The attorneys insist this created unequal conditions for the parties involved in the process.

It’s worth noting that at the end of October, SBF stated that FTX was solvent at the time of its collapse and rejected accusations of fraud and misappropriation of client funds.