FTX Backs Down: Creditors Win Reprieve as Exchange Drops Plan to Limit Payouts

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In a significant win for creditors, FTX has withdrawn its controversial motion that sought to restrict repayments to customers in nearly 50 countries, including China and Russia.

The proposal, which could have led to the forfeiture of an estimated $800 million in claims, faced fierce opposition from creditor groups.

The withdrawal, though made without prejudice and allowing FTX to refile later, marks a temporary victory for international claimants who argued the plan lacked legal justification and unfairly targeted them based on their jurisdiction.