Faced with organized opposition, FTX has scrapped a plan that threatened to block refunds to its largest international customer base.
The withdrawn motion affected 49 jurisdictions, but China alone accounted for a staggering 82% of the $800 million in claims at risk.
The change of course comes after a formal objection filed by a group of more than 300 Chinese claimants, who successfully argued that FTX's proposal to designate China as a "restricted jurisdiction" was unfounded.
This ensures that, for now, Chinese customers remain on the list to receive a share of the $16 billion potential distributions.