FTX Bankruptcy Motion Lifts Jurisdiction Barriers for Creditors

FTX bankruptcy proceedings now include a court motion to remove rigid jurisdiction restrictions that barred creditors in regions like China and Russia from distributions. The change lets creditors update their KYC and residency before the distribution phase or relocate to crypto-friendly jurisdictions such as Singapore or the UAE. Under the proposed rules, courts will verify jurisdiction closer to the distribution date, treating jurisdiction as dynamic rather than fixed. Creditors should gather KYC and residency documents, comply with AML and tax requirements, and seek legal advice. Traders should monitor court approval and overall recovery rates in the FTX bankruptcy, as this development could speed up asset distributions, reduce litigation, and boost market confidence.