The FTX Estate’s proposal to suspend repayments in several jurisdictions has been challenged by Chinese creditors, spotlighting legal complexities in cross-border cryptocurrency asset recovery. Representatives for over 300 Chinese creditors formally objected to the estate’s motion seeking payment delays in China, Russia, Egypt, and Moldova.
Attorney Weiwei Ji, representing Chinese claimants, argues the estate’s move improperly excludes creditors despite regulatory restrictions. The objection states the motion violates bankruptcy court procedures and fails to substantiate claims of legal risks adequately. Creditors contend they’ve actively navigated regulatory barriers and deserve fair access to recover assets.
This dispute arises as FTX’s bankruptcy resolution progresses following repayment initiations last year. Creditor objections risk extending settlement timelines beyond original projections. The conflict underscores broader jurisdictional challenges in global crypto bankruptcies, including creditor rights protections and cross-border regulatory coordination.
The case’s outcome could establish critical precedents for future digital asset recovery frameworks as stakeholders await judicial review.