Why FTX ruling on China payouts matters: Global precedent at stake
A US bankruptcy court is set to decide whether to block creditor payouts to certain countries after receiving at least 40 objections from creditors in China, Saudi Arabia and more.
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.
