FTX Abandons Plan to Withhold Customer Repayments in China, Russia

FTX has withdrawn a motion that could have blocked customer repayments in 49 countries.

The proposed procedure would have allowed the estate to forfeit claims totaling approximately $800 million if compliant payouts were deemed impossible in jurisdictions like China and Russia.

The withdrawal, made without prejudice, follows creditor objections and marks a temporary halt to the controversial plan. FTX may choose to refile a revised version of the motion in the future.