Ah, the eternal conundrum of the crypto world: how to navigate the murky waters of international law without losing one’s shirt 🤯. In this case, a Chinese creditor, Weiwei Ji, has taken umbrage with FTX’s latest plan to delay payouts to individuals residing in countries with crypto restrictions 🚫.
Ji, a Singaporean tax resident with a Chinese passport, has filed an objection in Delaware Bankruptcy Court, representing over 300 Chinese creditors 👥. He argues that FTX’s decision to label him a “Chinese creditor” based solely on his passport is a tad… unfair 😒. After all, he resides in Singapore, where the crypto laws are as clear as a tropical island’s waters 🌴.
But, alas, FTX’s proposed plan puts Ji’s payouts at risk, despite his family having four verified FTX accounts with claims worth over $15 million 💸. Ji’s objection notes that FTX is paying in U.S. dollars, which is as legal as a summer breeze on a hot day ☀️. And, as digital assets are treated as personal property in China, crypto payouts are allowed, much like a refreshing glass of lemonade on a sweltering afternoon 🍋.
“We have fully complied with every procedural requirement under the plan. The proposed motion now jeopardizes our right to distribution in an arbitrary and inequitable manner,” Ji said, his words dripping with the frustration of a man stuck in a bureaucratic quagmire 🌀.
This drama unfolds after the FTX Estate asked the U.S. Bankruptcy Court in Delaware to pause payouts to people in 49 countries with unclear or strict crypto laws 🚫. China, with its 82% of total claims, takes center stage in this debacle 🎭.
FTX Claim Distribution
Restricted Jurisdictions: $470m
Chinese are the largest holder of FTX claims: $380m (82% of restricted)
KYC not completed- Bahamas: $290m
Disputed -multiple claims: $660mTotal – awaiting solution: $1.4bn
Total Estimated Allowed claims: $11bn
— Sunil (FTX Creditor Champion) (@sunil_trades) July 7, 2025
The list of restricted countries reads like a Who’s Who of global hotspots: Russia, Egypt, Afghanistan, Tunisia, Zimbabwe, Ukraine, and Moldova 🌎. FTX’s creditor trust claims that sending money to these regions could break local laws and lead to legal trouble, putting funds for other creditors at risk 🚨.
But Ji and his fellow Chinese creditors will not go quietly into the night 🌃. They argue that labeling China as a restricted jurisdiction has no legal basis and that payouts can still happen through Hong Kong, that bastion of crypto-friendliness 🤝.
As the Celsius case demonstrates, digital assets are still legal property in China, and Hong Kong is becoming more crypto-friendly by the day 📈. Ji urges the court to reject the proposed restrictions, saying that there is no legal risk in paying Chinese creditors and that it’s all part of the bankruptcy process 📊.
Over 500 Chinese creditors are challenging FTX’s request to delay the payouts, objecting that FTX is breaking earlier promises and unfairly targeting creditors based on nationality 🚫. It’s not just about the money, they argue; it’s about fairness, trust, and being treated equally 💖.
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2025-07-10 13:09