Weiwei Ji filed an objection on behalf of over 300 Chinese FTX creditors facing potential claim forfeitures.
FTX’s motion could reallocate $800 million in claims from 49 jurisdictions, with China representing 82% of the total.
Ji cited Hong Kong banking channels and Chinese legal recognition of crypto to dispute the “restricted” designation.
A creditor representing over 300 Chinese individuals has formally opposed a motion filed by FTX that may limit creditor distributions in certain jurisdictions. The filing was made in the Delaware Bankruptcy Court on behalf of affected claimants. The creditor, Weiwei Ji, stated that the motion could unfairly impact Chinese nationals seeking reimbursement through the bankruptcy process.
$800 Million in Claims at Stake Across 49 Jurisdictions
According to court filings, FTX has identified $800 million in claims spread across 49 potentially restricted jurisdictions. China accounts for roughly 82% of that total, based on earlier estimates reviewed by The Block. The motion would allow FTX to classify regions as restricted if it cannot meet legal distribution requirements.
Under the proposed plan, FTX would consult legal experts in each of the 49 jurisdictions. If they find that compliant distributions are not possible, those regions would be designated as restricted. Creditors in restricted areas could challenge the decision, but if no objection is filed or if the court overrules them, FTX could then forfeit those claims. The forfeited funds would be redirected to the broader FTX Recovery Trust.
Ji Disputes China's Inclusion in Restricted List
Weiwei Ji filed the objection on July 9, explaining that although he resides in Singapore for tax purposes, FTX classified him as a Chinese creditor due to his passport. He added that his family holds four Know-Your-Customer verified accounts on FTX, with total claims exceeding $15 million.
Ji stated that his group of over 300 creditors has followed all required procedures under the bankruptcy plan. He argued that the motion threatens their right to distributions unfairly. According to Ji, the proposed jurisdiction designation lacks both legal and factual support.
Hong Kong Cited as a Compliant Distribution Channel
In the objection, Ji referenced existing legal channels that could allow compliant distribution of claims to Chinese creditors. He pointed to the example of the Celsius Network bankruptcy, where similar distributions were routed through Hong Kong-based financial accounts.
Ji wrote that FTX claims are denominated in U.S. Dollars and can be processed through existing banking frameworks. He also emphasized that digital assets are recognized as legal property under Chinese law, with Hong Kong adopting clear regulations supportive of cryptocurrency handling.
The filing concluded with a request that the court reject any decision to designate China as a restricted jurisdiction. Ji argued that distributing claims to Chinese creditors poses no legal risk to the trustee. He urged the court to ensure that the bankruptcy process proceeds without excluding any compliant parties from rightful distributions.
