FTX has officially withdrawn its controversial motion to block or delay payments to creditors in 49 countries, including Russia and China, after facing intense opposition from international claimants.
The reversal, announced by the FTX Recovery Trust on November 4, 2025, marks a rare policy U-turn in one of the most closely watched bankruptcy cases in crypto history.
The Motion and Its Withdrawal
Initially filed in July 2025, the proposal sought to suspend or restrict repayments to users from jurisdictions deemed “high-risk” or lacking clear cryptocurrency regulations. This included several major markets, with China alone representing an estimated $380 million in claims. The move drew immediate backlash from affected creditors, who accused FTX of discrimination and overreach, arguing that the plan violated equitable repayment principles.
Pressure from international creditor groups, including prominent figures such as Sunil Kavuri, who has been a key advocate for FTX’s global claimants, ultimately forced the exchange to abandon the motion. The Recovery Trustconfirmed that while the filing has been withdrawn, FTX reserves the right to refile an updated version, should it address fairness and compliance concerns raised by the court and creditors.
Broader Context: Repayments and Legal Developments
The withdrawal comes as part of FTX’s ongoing repayment process, which began earlier this year. The first wave of repayments targeted creditors with claims of $50,000 or less, who are set to receive 119% of their balances, calculated using November 2022 asset prices, when the exchange collapsed.
This valuation method, however, remains deeply controversial. While many smaller creditors are technically being repaid above their original dollar value, they are missing out on massive crypto appreciation since 2022. For instance, Bitcoin’s price has more than tripled since FTX’s collapse, leaving many creditors feeling shortchanged despite the headline “profit.”
Adding to the legal backdrop, founder Sam Bankman-Fried’s defense team appeared in an appeals court in early November, seeking to overturn his fraud conviction. The renewed attention on FTX’s legal proceedings adds further complexity to the exchange’s efforts to rebuild trust with its global user base.
