FTX Recovery Trust may withhold assets from creditors in 49 restricted countries
FTX Recovery Trust wants to put together a team of experts to help it determine if it will be permitted to distribute somewhere in the region of $800 million in assets to creditors in 49 “potentially restricted countries.”
Specifically, it wants to employ regional lawyers to assess whether or not the countries in question are legally sound for creditors. If they are, their funds will be returned.
This is according to a filing, part of which was shared by FTX creditor activist Sunil Kavuri, which lists countries including Saudi Arabia, China, Egypt, Russia, Ukraine, the Republic of the Congo, and Montenegro.
The claims in the 49 countries represent roughly 5% of FTX’s $16 billion in potential claims, with China alone representing 82% of the claimants in potentially restricted countries.
Read more: FTX dropped lawsuit against Allan Bankman and Barbara Fried
If any country is found to employ restrictive crypto regulations, the creditor funds will be returned to the FTX Recovery Trust for redistribution.
Creditors can object within 45 days of the restricted country notice being served, at which time the funds going to that country will be held until the objection is resolved or further clarification from the court is given.
FTX files lawsuit to claw back $50M for creditors
FTX recovery trust has also been busy filing a lawsuit against the African crypto firm AZA Finance as it attempts to claw back $50 million it loaned to the company back in November 2022.
It accused the firm of accepting the loan before secretly carrying out a demerger of the company that would allow it to avoid both liability and paying back the loan.
FTX Recovery Trust claimed, “AZA Finance’s bankruptcy filing was timed so that the Luxembourg Demerger would fall just outside the six-month and 10-day ‘hardening period’ under Luxembourg law.”
It added, “The entire purpose of the Luxembourg Demerger was to fraudulently avoid the payment of funds belonging to Plaintiff through an asset-stripping demerger followed by a sham bankruptcy.”
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