Chinese Creditors Challenge FTX Estate’s Payout Restrictions

Key Points

1. Weiwei Ji, a Chinese creditor living in Singapore, filed an objection to FTX's motion to restrict repayments to countries like China, Russia, Zimbabwe, and Moldova.

2. FTX's motion, filed on July 2, cited legal complexities in administering repayments in these countries, with Moldova highlighted as a specific risk example.

3. Ji argues that Chinese law recognizes U.S. dollar settlements and that his family's KYC-verified accounts, with claims exceeding $15 million, comply with all procedural requirements.

4. The objection highlights the broader challenges of cross-border bankruptcy proceedings and the impact on creditors worldwide.

5. FTX began repayments on February 18, prioritizing certain classes of creditors, a decision that has faced criticism.