More than 500 Chinese creditors are challenging FTX’s $470 million payment freeze in a U.S. court

PANews reported on July 9 that according to CryptoSlate, more than 500 Chinese creditors are raising objections to FTX's freezing of $470 million in payments to the U.S. court. FTX previously requested a suspension of payments to users in 49 jurisdictions including China, citing "cryptocurrency legal uncertainty." Chinese creditors were involved in $380 million in claims, accounting for 82%.

Will, a representative of the creditors, said that the group has submitted 35 written objections to the bankruptcy court and is seeking collective legal representation. He questioned FTX's unilateral change of terms after the restructuring plan was approved, believing that this move undermines procedural fairness based on differential treatment based on nationality or region. FTX said that this move was to avoid the legal risks of remitting money to areas where cryptocurrencies are restricted.