Chinese Creditors Challenge $1.4B Exclusion from FTX Bankruptcy Claims
Main Idea
Chinese creditors are challenging the exclusion of $1.4 billion in claims from the FTX bankruptcy process, with $380 million specifically from Chinese users, citing completed KYC procedures and referencing the Mt. Gox precedent.
Key Points
1. 35+ Chinese creditors have submitted court objections to prevent the exclusion of $1.4 billion in claims, including $380 million from China.
2. The FTX Recovery Trust has flagged claims from restricted jurisdictions and users who failed KYC verification, totaling $1.4 billion in disputed claims.
3. Chinese creditors argue they completed KYC procedures on FTX.com and reference the successful repayments to Chinese users in the Mt. Gox case as a precedent.
4. The FTX Recovery Trust plans to reduce its original reserve by $1.93 billion, adjusting the total reserve to $4.6 billion.
5. A U.S. journalist expressed surprise that FTX.com operated in mainland China, highlighting the accessibility of Chinese KYC verification on the platform.
Description
35+ Chinese creditors have submitted court objections to prevent exclusion. FTX Recovery Trust places $1.4 billion in claims under dispute, including $380 million from China. Legal filings indicate possible exclusion of restricted and non-KYC claims. A group of Chinese creditors is fighting back against their exclusion from the FTX bankruptcy process, as $1.4 billion in claims remain unresolved. Over $380 million in claims from China are at risk of being denied due to regulatory concerns around ...
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