FTX Estate is moving down the country’s restricted payouts

The bankruptcy estate of defunct crypto exchange FTX has abandoned a move aimed at limiting creditor distributions to “potentially restrict foreign shareholders.”

The FTX Recovery Trust on Monday filed A notice withdrew its motion for entry of an order in support of the confirmed plan allowing its enforcement to implement restrictive jurisdictional procedures in potentially restrictive foreign jurisdictions such as China.

“If and when FTX Recovery Trust seeks to renew the relief requested in the motion, FTX Recovery Trust shall file a motion and provide notice in accordance with the applicable rules,” the notice states, adding that the motion was withdrawn without prejudice.

The trust filed the motion in early July, seeking the court’s permission to Freeze payout to creditors in 49 countries such as China, Saudi Arabia, Russia and Ukraine, citing unclear or restrictive local crypto laws.

Don’t celebrate too soon, the lender warns

The withdrawal is a significant win for affected FTX creditors, but some of them say it is too early to celebrate.

“This is a victory for all potentially affected creditors. But until you receive the payment you owe, stay vigilant and keep moving,” Weiwei Ji, a creditor known as Will at X, write in a post on Tuesday.

The estate’s decision to withdraw the move came after strong pushback from creditors, including AT at least 70 objections filed in bankruptcy court Within weeks of submitting the motion.

Amid protests in July, Ji warned that the court’s approval of FTX’s move regarding restricted countries could set a standard for future crypto losses.

Related: Bankman-Fried said his biggest mistake was handing over FTX to the new CEO before the bankruptcy

“This move is not just about FTX creditors. It sets a dangerous precedent that could destroy trust in the global crypto ecosystem,” he wrote at the time.

Sunil Kavuri, a prominent representative of FTX Creditor, on Sunday warned that the The cost of FTX distributions may be lower than expected By many, given that payouts are made in fiat rather than cryptocurrencies.

“The creditors of FTX are not whole,” he wrote, adding that the planned 143% payment of the FTX estate does not reflect losses in crypto-denominated terms.