A group of Chinese creditors opposes FTX's plan to delay payments to countries with strict cryptocurrency regulations.

They argue that classifying creditors solely based on nationality without considering residency is unfair and violates the right to receive lawful payments.

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  • FTX proposed to temporarily delay payments to creditors in 49 countries with complex cryptocurrency laws, with China accounting for 82% of the total value of claims.

  • The group of Chinese creditors strongly opposes this, asserting that payments in USD are legal and digital assets are still recognized as personal property by Chinese law.

  • FTX requests the court to allow hiring local lawyers to verify the legality of the payments to avoid legal risks.

Why does FTX want to delay payments in countries with strict cryptocurrency laws?

This is the legal measure proposed by FTX Estate to avoid legal risks when transferring money to regions with unclear or very strict cryptocurrency laws such as China, Russia, and Ukraine.

On July 2, 2025, FTX filed a request with the Delaware Bankruptcy Court (USA) to temporarily delay payments to 49 countries with high legal risks related to cryptocurrency. It is estimated that these countries represent over 470 million USD in payment claims, with China accounting for 82% of the value.

“The payment of money to these localities could expose the FTX management to serious legal risks such as fines, personal liability, or even imprisonment.”
Sunil, representative of FTX creditors, July 2025

These risks include violating the domestic laws of each country, jeopardizing the remaining assets of other creditors awaiting payment.

How do the Chinese creditors strongly oppose this plan?

Representative Weiwei Ji, a resident of Singapore and representing over 300 Chinese creditors, opposed FTX's labeling of “Chinese creditors” based solely on passports without considering actual residency.

Mr. Ji confirmed that payments in USD are legal, and digital assets are still considered personal property protected by Chinese law. His family has four verified accounts at FTX with a total payment request of over 15 million USD.

“We fully comply with all regulations and procedures according to the bankruptcy plan. The current proposal to delay payments places our rights in an unfair and arbitrary situation.”
Weiwei Ji, representative of Chinese creditors, July 2025

He also pointed out that payments could be conducted through channels like Hong Kong, an increasingly crypto-friendly hub, as seen in the Celsius bankruptcy case where ownership of digital assets remains secured.

What is FTX's plan to address payment difficulties to these countries?

FTX requests the court's permission to hire local legal experts to verify the legality of payments to creditors in restricted countries.

If the lawyers determine that payments are not legally feasible, the corresponding claims will be canceled and returned to FTX's trust fund. This only affects about 5% of the total approved claims, with a total pending value of up to 1.4 billion USD (including disputes and claims not yet fully verified KYC).

Criteria China Other restricted countries Unverified KYC countries Total claim value 380 million USD (82% of the restricted area) 90 million USD 290 million USD Legal transfer Legal USD payment recognized as personal property High risk of violating local laws Pending KYC verification, legality unclear Claim status Strongly opposed, calling for fairness Temporarily suspended as proposed by FTX Not processed

What are the implications and lessons from this case for global cryptocurrency creditors?

This case highlights the importance of clearly distinguishing between nationality and residency in managing payments. It also shows the many complex legal risks when making payments in the global cryptocurrency market, especially disputes related to the laws of countries with stringent regulations.

Legal expert on cryptocurrency bankruptcy, Ms. Linda Matthews, commented in 2025: “Coordination of international law and local bankruptcy law needs to be strengthened to protect creditors' rights while ensuring compliance with the law.”

Frequently Asked Questions (FAQ)

  • Why does FTX delay payments to countries with strict cryptocurrency laws?
    To avoid legal risks and protect assets for other creditors, FTX proposes to temporarily suspend payments to regions potentially violating the law.

  • What is the reaction of Chinese creditors?
    They disagree with being classified based solely on passports and assert that payments in USD are completely legal.

  • Is cryptocurrency payment legal in China?
    Although cryptocurrency transactions are banned, digital assets are still considered legal personal property under Chinese law.

  • How will FTX handle if payments are illegal?
    The claim will be canceled and the funds will be retained in the trust fund to pay other creditors.

  • Can payments be made through any other channels?
    Payments through Hong Kong are considered feasible due to the more favorable cryptocurrency legal environment compared to mainland China.

Source: https://tintucbitcoin.com/chu-no-trung-quoc-kien-dinh-chi-thanh-toan/

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