FTX Recovery Trust is stalling: why creditors from restricted countries won’t get their money in 2025
(An independent analytical report by Reclaim Capital)
Recent statement by FTX Recovery Trust
FTX Recovery Trust is stalling
Despite the recent announcement by FTX Recovery Trust that it is withdrawing its motion for restricted jurisdictions (FTX restricted jurisdictions, foreign jurisdictions with restrictions), we believe that nothing has fundamentally changed.
As discussed during the October 23 general hearing, claims in contentious jurisdictions are not being dismissed, but rather suspended until further regulatory clarity is achieved in local jurisdictions.
While this may be good for some creditors, it is also an outcome that has yet to be realized and is unlikely to change anything in the next 3-5 years.
In fact, it gives the court and the FTX Recovery Trust even more time and legal grounds not to pay these claims now or in the near future.
Therefore, despite the optimistic headlines in the newspapers, we are convinced that, unfortunately, there is no good news for creditors in restricted jurisdictions.
What was discussed at the court hearing on October 23, 2025?
The main topic was precisely the disputed jurisdictions of FTX.
During the hearing, the judge disagreed with the attempt to file a motion to restrict the distribution of funds in certain jurisdictions.
The judge stated that it was too early to exclude valid claims solely on the basis of limited jurisdictions, emphasizing that such measures should be a last resort once the legal and regulatory landscape becomes clearer. She emphasized that by the time the case is concluded, the law may have changed, making premature exclusions unfair.
Sullivan & Cromwell proposed proceeding cautiously, acknowledging the court’s concerns and waiting for further clarity, although it noted that for limited jurisdictions, the claims remain unconfirmed and will not be paid in subsequent distributions.
At the same time, the judge stated that creditors remain free to sell their claims or change jurisdictions until the issue is resolved, given that any changes in the law or developments in the case will take time.
Next steps will include monitoring legal changes by the trust and engaging external legal advisors to obtain legal opinions before revisiting the application at a later, more appropriate stage.
You can sell your FTX claim here within 48 hours.