CHINESE FTX CREDITORS CHALLENGE PAYOUT DISCRIMINATION IN COURT

A Chinese FTX customer has filed a formal objection in U.S. Bankruptcy Court, arguing the exchange’s proposed payout plan unfairly excludes users from “Restricted Jurisdictions” like China and Russia — despite valid claims.

🔹 Over 300 Chinese creditors represented

🔹 Cites violation of U.S. Bankruptcy Code (Section 1129(b)(1))

🔹 Plan accused of geographic discrimination with no legal precedent

🔹 Could set a major precedent for cross-border crypto bankruptcies

The upcoming court ruling could reshape how international crypto insolvencies are handled — and who gets paid.

#FTX #CryptoBankruptcy #China #USBankruptcyCourt #CryptoLaw