FTX Finds a New Way Not to Pay

One of the activists from the FTX creditor community has shared court documents revealing that FTX claims it’s unable to return funds to users from 49 jurisdictions. The biggest impact falls on residents of China, who account for roughly 82% of the unpaid claims.

FTX cites local laws in those regions as the reason - either due to bans on crypto trading or restrictions on the entities handling payouts.

But at least one FTX user from Ukraine has already pushed back, calling this a lie. He pointed out that crypto trading is perfectly legal in Ukraine and that one of the payout partners, Kraken, operates there without issue.

And it’s not just Ukraine. Several other jurisdictions on FTX’s list don’t actually have any legal barriers preventing customers from receiving their money.

So, is FTX lying to the court? Let’s hope the judge takes a close look and doesn’t let them get away with this.

This is exactly why trusting exchanges that hold your crypto is such a risky game. When it comes time to get your money back, they’ll always find an excuse.

It’s safer to swap crypto on rabbit.io - where funds move from your own wallet, and back to your own wallet.