FTX Bankruptcy Proposal Faces Legal Challenge Over Potential Exclusion of Chinese Bitcoin Creditors
2025-07-10 09:36:48
Main Idea
FTX's bankruptcy proposal to exclude Chinese creditors faces legal opposition, with a formal objection filed by Weiwei Ji on behalf of over 300 Chinese creditors, citing legal and regulatory grounds.
Key Points
1. Weiwei Ji, representing over 300 Chinese creditors, filed an objection in the Delaware Bankruptcy Court on July 8, 2025, against FTX's proposal to limit creditor payouts in 49 jurisdictions, including China.
2. The objection argues that Chinese creditors' crypto holdings are legally distinct from trading activities, supported by judicial decisions, including a landmark 2024 case.
3. Ji references precedents from Celsius and Mt. Gox bankruptcies, where Chinese creditors received payouts without jurisdiction-based restrictions.
4. The Delaware Bankruptcy Court is scheduled to review the objection on July 22, 2025, with potential implications for future crypto bankruptcy cases.
5. Hong Kong's regulatory framework is cited as a viable conduit for Chinese creditors to lawfully receive funds.
Description
FTX’s recent proposal to exclude creditors from 49 jurisdictions, including China, has sparked legal opposition, highlighting critical issues in crypto bankruptcy settlements. A group of Chinese creditors, led by Weiwei
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