FTX vs. Chinese Creditor: A Crypto Battle Royale! 💥💸

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A key Chinese creditor of the now-bankrupt crypto exchange FTX has filed a formal objection to FTX’s motion to block payouts to creditors in some jurisdictions, including China. The creditor, Weiwei Ji, who represents the needs of about 300 Chinese FTX account holders, stated that his family had four KYC-verified FTX accounts with cumulative claims of more than $15 million.

In the filing, Ji said that his family had done everything in the procedures conducted according to the plan. This would mean that the motion that is being presented would have them at the risk of being subject to uneven and discriminatory distribution of their rights.

This objection comes on the heels of FTX Recovery Trust filing a motion to settle the claims of creditors in 49 jurisdictions where crypto is banned or restricted, including China, Russia, and Pakistan. The motion proposes to work with legal counsel in those areas to review the laws pertaining to distributing claims for each case in those jurisdictions.

Ji claimed that this motion to classify China as a restricted jurisdiction lacks any substance, either factually or legally. He highlighted existing distribution mechanisms and used the case of the Celsius Network bankruptcy proceedings as an example. He further pointed out that while crypto trading was banned in China, digital assets were acknowledged as personal property, and that the regulation of digital assets in Hong Kong has become more forward-thinking.

He underlined that the process of distributions to Chinese creditors does not carry legal risk and urged the court to reject the proposed restrictions. 😜

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2025-07-10 20:57