According to BlockBeats, on July 22, a court document reviewed by Cointelegraph revealed that the bankrupt cryptocurrency exchange FTX's management team is requesting a delay in Delaware court to respond to over 90 objections raised against its proposed 'freeze on payments to certain foreign jurisdictions'.
This document titled (Motion for Leave) was submitted on Sunday to seek more time for the FTX team to prepare its reasons for suspending payments to creditors from so-called 'restricted jurisdictions'. The court has scheduled a hearing on Tuesday regarding the motion that initially sparked controversy. The FTX management team stated in the motion: 'Due to the large number of objections received around the deadline, the FTX Recovery Trust requires additional time to draft, finalize, obtain approval, and submit a response.' The motion initially filed by the FTX management team seeks to suspend compensation to creditors from countries with ambiguous crypto laws or restrictive regulations. They argued that making payments to residents of these countries could 'trigger fines and penalties, including personal liability for directors and executives, and may even result in criminal penalties, including imprisonment.'
This decision will affect creditors in 49 countries, involving a total of $470 million in claims. Among them, Chinese residents are the largest affected group, accounting for 82% of the total claims from so-called 'restricted countries', approximately $380 million. The FTX management team's decision to freeze repayments has drawn strong criticism from some creditors. Among them, creditor representative Weiwei Ji stated that he is fighting on behalf of hundreds of Chinese creditors.
