FTX Creditors Achieve Significant Victory: Court Halts "Restricted Jurisdiction" Differential Compensation Plan

According to the latest documents from the Delaware Bankruptcy Court, FTX's Reorganized Trust officially withdrew its previously filed "Restricted Jurisdiction Procedure" motion on November 3rd, marking a major development in the FTX bankruptcy case. The motion initially aimed to implement special procedures in certain foreign jurisdictions to facilitate the execution of the restructuring plan.

The withdrawal of this motion follows clear objections expressed by the court during a hearing on October 23rd. Additionally, procedural requirements stipulate that if FTX's Reorganized Trust wishes to restart similar procedures in the future, it must refile the motion and complete the full notice process, providing necessary legal protections for creditors.

The so-called "Restricted Jurisdiction Procedure" involves establishing a differential compensation mechanism for creditors in specific regions. According to the original plan, if the trust unilaterally determines that payments to a certain region violate local encryption regulations, creditors in that region could have their claims classified as "Disputed Claims," or even face complete deprivation of their rights to receive payments.

The unconditional withdrawal of this motion is seen as a phased victory for the affected creditors. This development not only safeguards creditors' equal rights but also lays an important foundation for the fair progression of subsequent bankruptcy proceedings.

With the "Restricted Jurisdiction Procedure" motion now withdrawn, the market will closely monitor whether FTX's Reorganized Trust will propose new alternative plans and how the court will balance restructuring efficiency with the protection of creditors' rights—an essential issue.

This withdrawal not only sets a positive precedent for future cross-border cryptocurrency bankruptcy cases but also demonstrates the law's commitment to ensuring that every creditor, regardless of location, enjoys equal rights.

#FTX破产案 #Creditors' Rights