The FTX Recovery Trust is seeking court approval to implement a new process for handling creditor claims from 49 jurisdictions where cryptocurrency is banned or heavily restricted, including China, Russia, Ukraine, Pakistan, and Saudi Arabia. This move could result in the forfeiture of payouts to creditors in these countries. The affected claims represent approximately 5% of the total $16 billion in potential claims against FTX, with over 82% of that value linked to Chinese creditors. The trust has frozen around $500 million in distributions tied to these restricted jurisdictions pending legal clearance. More than 500 Chinese creditors have challenged the FTX Recovery Trust's motion to halt payouts, arguing that their cryptocurrency assets are legitimate and should be compensated. A leading Chinese creditor has warned that the proposed motion could strip creditors in China and the other 48 countries of their repayment rights, highlighting the ongoing legal dispute over billions of dollars in frozen assets.