FTX Faces Backlash: Chinese Creditors Fight Payout Freeze Over Fairness and Legal Grounds

2025-07-10 10:10:44

Main Idea

A Chinese creditor, Weiwei Ji, has objected to FTX's motion to delay payouts to creditors in countries with crypto restrictions, arguing that the classification and treatment of Chinese creditors is unfair.

Key Points

1. Weiwei Ji, a Singaporean resident representing over 300 Chinese creditors, filed an objection in Delaware Bankruptcy Court against FTX's payout plan.

2. Ji argues that FTX unfairly labeled him as a 'Chinese creditor' based solely on his passport, despite his residency in Singapore.

3. FTX is paying creditors in U.S. dollars, which is legal, but Ji claims the delayed payouts unfairly risk the claims of verified account holders.

4. China accounts for 82% of the total claims, and the payout freeze affects 5% of all approved claims, including creditors from other restricted countries like Russia and Ukraine.

5. FTX has requested court permission to hire local lawyers to assess the legality of payouts in restricted jurisdictions.

Description

The post FTX Faces Backlash: Chinese Creditors Fight Payout Freeze Over Fairness and Legal Grounds appeared first on Coinpedia Fintech News A Chinese creditor has objected to an FTX motion that would delay payouts to people in countries with crypto restrictions. Weiwei Ji, a Singaporean tax resident, has filed an objection in Delaware Bankruptcy Court against FTX’s latest plan, representing over 300 Chinese creditors. He argues that he was unfairly labeled a “Chinese creditor” by FTX based solel...

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