WSJ Tech News Briefing TNB Tech Minute: Some FTX Customers in Limbo Over Foreign Crypto Crackdown
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Jul 7, 2025 Customers of FTX are facing uncertainty due to foreign crypto restrictions amidst the company's bankruptcy. In a big move, CoreWeave is set to acquire Core Scientific for a whopping $9 billion. Meanwhile, Tesla's stock takes a hit following Elon Musk's announcement of a new political party. It's a whirlwind of tech news that highlights the complex landscape of cryptocurrency and corporate shifts.
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FTX Customers in China and Afghanistan May Lose Their Money
FTX customers in countries like China and Afghanistan may face difficulties getting their money back due to restrictions on cryptocurrency transactions.
The crypto exchange collapsed and filed for bankruptcy in late 2022 after a liquidity crisis caused by a surge in customer withdrawals. While FTX's bankruptcy plan includes repaying customers with interest, hundreds of millions of dollars of customer claims risk being held up or unpaid because account holders reside in regions that restrict crypto activity.
These foreign payments represent about 5% of the value of allowed claims in FTX's bankruptcy case, highlighting the impact of regulatory crackdowns on foreign customers.
FTX Customer Repayment Risks
- FTX customers in regions restricting crypto transactions may lose access to their funds during bankruptcy repayment.
- This affects claims worth hundreds of millions, about 5% of allowed bankruptcy claims.
CoreWeave Acquires CoreScientific
- CoreWeave is acquiring CoreScientific in an all-stock deal valued at around $9 billion.
- The transaction aims to enhance CoreWeave's data center vertical integration.