While FTX creditors in most regions are finally getting their money back, users across 49 jurisdictions remain stuck in crypto limbo. A staggering $800 million in claims sits frozen, tangled in a mess of legal red tape and regulatory nightmares.
And surprise, surprise – China’s at the heart of this financial headache, accounting for a whopping 82% of all disputed claims.
The numbers tell a brutal story. FTX has managed to distribute about $6.2 billion since its spectacular 2022 collapse, but that’s cold comfort for users in restricted regions. The disputed claims reserve recently shrunk from $6.5 billion to $4.3 billion, with $1.9 billion released for permitted claims. The next round of distributions is set to begin on September 30, 2025. The estate’s previous distributions included $1.2 billion in February.
Meanwhile, Chinese users are left staring at their screens, wondering what happened to their $650 million.
Chinese crypto investors helplessly watch as their $650 million remains trapped in FTX’s regulatory maze, with no clear path to recovery.
The problem? A toxic cocktail of national crypto bans, murky regulations, and bureaucratic obstacles. Getting paid requires jumping through endless hoops – KYC checks, tax documentation, platform onboarding.
Good luck with that if you’re in a country where crypto transactions are about as welcome as a digital plague.
China’s situation is particularly absurd. Since banning crypto transactions in 2021, the country has effectively trapped thousands of its citizens in a bizarre financial purgatory.
Their money exists, but accessing it? That’s another story entirely. Many smaller Chinese claimants don’t even know where to begin with the compliance procedures.
The technical hurdles don’t help either. Claimants must use specific platforms like BitGo, Kraken, or Payoneer – all with their own strict requirements and deadlines.
Miss a deadline or fail to meet some obscure technical standard? Too bad. The Recovery Trust continues its painfully slow process of claim validation, while the Restricted Jurisdiction Procedure remains stuck in legal quicksand until at least July 2025.
For now, affected users can only watch and wait as their funds gather digital dust in crypto’s no-man’s-land.
