FTX seeks time to respond as creditors fight freeze on $470M foreign claims
Main Idea
The FTX estate is requesting more time to respond to objections regarding the freezing of $470 million in foreign claims, with significant creditor pushback, particularly from Chinese creditors representing a large portion of the funds.
Key Points
1. FTX estate seeks a delay in Delaware court to address over 90 objections to its handling of foreign claims totaling $470 million.
2. The motion aims to provide additional time for the FTX Recovery Trust to draft and finalize its response to creditor objections.
3. Creditors in 49 countries are affected, with China accounting for 82% ($380 million) of the disputed repayment funds.
4. Weiwei Ji, representing hundreds of Chinese creditors, has voiced strong opposition to FTX's proposed handling of the claims.
5. FTX creditor Sunil Kavuri notes $1.4 billion in claims remain unresolved, with repayments to creditors beginning in February 2024, over two years after FTX's bankruptcy filing in November 2022.
Description
The FTX estate calls 49 countries “restricted foreign jurisdictions” including China, which accounts for 82% of repayment funds the bankrupt cryptocurrency exchange would hold back.
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