Chinese Creditors Challenge FTX Over $380 Million Claim Freeze

- Over 300 Chinese creditors, represented by Weiwei Ji, oppose FTX Estate's motion to halt payouts in restricted jurisdictions. - Chinese claims exceed $15 million individually, with a total at stake of more than $380 million. On July 9, 2025, Cointelegraph reported that Weiwei Ji, representing more than 300 Chinese creditors, formally objected to the FTX Estate’s proposal to suspend repayments in 49 countries with restrictive cryptocurrency regulations. Ji filed the objection in the U.S. Bankruptcy Court for the District of Delaware, arguing that payouts in U.S. dollars are lawful under Chinese regulations because the country recognizes cryptocurrency as "personal property." The objection states that the motion undermines the creditors' rights to a fair and equitable distribution. The FTX Estate filed its motion on July 2. It aims to halt payments in jurisdictions where unclear or restrictive crypto laws could expose its officers to legal risks. China accounts for 82% of the total value of these claims, with over $380 million in dispute. The motion also targets other nations, including Russia, Egypt, Afghanistan, Tunisia, Zimbabwe, and Ukraine. Moldova is also on the list, as the country explicitly criminalizes virtual asset operations. Ji's objection adds more complexity to FTX’s already turbulent bankruptcy case, highlighting the difficulties of navigating globally inconsistent crypto regulations. In response, some creditors from the affected regions are now pursuing legal action, asserting that the Estate’s motion breaches earlier assurances of equitable treatment. The court has scheduled a hearing on the matter for July 22.