FTX Wants Court to Help Block Claims from Banned Crypto Zones. Yeah, Good Luck with That

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So here’s the scoop: FTX is basically asking the court to back them up in telling residents of banned crypto regions to kindly take a seat and wait—because, you know, their claims might be totally invalid. 🤷‍♀️

The whole thing comes from China’s ongoing crypto ban. Surprise, surprise! If you live in one of these “restricted” areas (like, um, China, for example), your crypto claims might be tossed out faster than you can say “blockchain,” because the local laws just don’t vibe with the whole “crypto transactions” thing.

FTX has now gone full drama mode and filed a motion with a U.S. bankruptcy court to give them a special pass to handle these claims. Now, they’re not even going to entertain the idea unless these claimants have proof from a local legal wizard (aka lawyer) that their claims are allowed under the law. No magic lawyer stamp? Sorry, your claim might be dead on arrival. 😬

And get this, if you’re still living in a banned zone? Well, good luck! You could be facing the harsh reality of getting absolutely nothing. 👀

FTX is *really* trying to navigate the wild world of international law while handing back billions to their former customers. But let’s talk about the Chinese crypto holders for a sec. They might technically “own” their crypto, but trading it? Oh no, that’s illegal. So, navigating this mess is about as clear as mud. 🥴

Not all Chinese claimants are taking this lying down. One person has already started legal consultations in New York (talk about taking it global) to challenge FTX’s rules. Why are USD transfers blocked when owning crypto is still technically okay? Good question! 🤔

And in case you’re wondering, some FTX supporters have casually suggested that the best option for these people might just be to sell or transfer their claims to someone who’s in a region that actually gets crypto. Because, why not? 🤷‍♂️

So, the court has a lot to figure out. And users in these “restricted” zones? Well, it’s either fight the legal battle, find a friendly jurisdiction, or walk away with nada. Sorry, no happy ending here. 😬

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2025-07-04 15:52