Chinese creditors challenge FTX’s bid to block billions in payouts

Key Points

1. Weiwei Ji, representing 300 creditors, objected to FTX's proposal to exclude Chinese creditors from settlements in the Delaware Bankruptcy Court on July 8, 2025.

2. China accounts for over 80% of the affected claim value, making it a key region under review alongside countries like Russia and North Korea.

3. Ji argued that FTX claims are denominated and settled in U.S. dollars and can be lawfully transferred via Hong Kong-based accounts.

4. While retail crypto trading is restricted in China, Ji emphasized that crypto ownership is lawful under Chinese law, supported by a 2024 Shanghai Court ruling.

5. Hong Kong operates under a separate legal framework and maintains a more favorable stance on crypto, which strengthens the argument for including Chinese creditors.