The FTX Recovery Trust is currently facing legal and operational challenges in distributing funds to creditors in 49 countries where cryptocurrency is banned or heavily restricted, including China, Russia, Ukraine, Pakistan, and Saudi Arabia. These jurisdictions account for approximately 5% of the total $16 billion in potential claims against the now-defunct crypto exchange, with over 82% of the affected claims linked to Chinese creditors. As a result, payouts to these creditors have been frozen pending court approval of a new claims handling process. Chinese creditors have actively challenged FTX's motion to halt these payouts, arguing that the proposed restrictions could strip them of their repayment rights. Despite these disputes, FTX is preparing to commence the next round of creditor repayments on September 30, 2025, following a court-approved reduction of the disputed claims reserve from $6.5 billion to $4.3 billion. The court has authorized $1.9 billion for this upcoming distribution, with a record date for claim holders set for August 15. Funds will be distributed through platforms including BitGo, Kraken, and Payoneer. To date, FTX has returned approximately $6.2 billion to former customers across two prior payout rounds.