The bankruptcy estate of the now-defunct cryptocurrency exchange FTX has decided to withdraw its motion aimed at limiting creditor distributions to certain “potentially restricted foreign jurisdictions.” This decision follows substantial pushback from creditors and a wave of objections filed in bankruptcy court.

FTX Trust Abandons Controversial Plan

The FTX Recovery Trust, which filed a notice on Monday, had previously sought court approval to freeze payouts to creditors in 49 countries, including China, Saudi Arabia, Russia, and Ukraine, citing ambiguous or restrictive local regulations surrounding cryptocurrency.

The trust’s motion, filed in early July, aimed to implement procedures that could have significantly affected the rights of creditors in these regions. However, numerou

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