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Chinese creditors oppose FTX's removal from the list of recipients.
A Chinese creditor of FTX, Mr. Weiwei Ji, has just filed an objection in the Delaware bankruptcy court against a plan that could eliminate the entitlement of creditors in restricted areas, including China.
Ji, representing over 300 Chinese creditors, stated that his family owns four KYC-verified accounts with a total compensation claim value of more than 15 million USD and has fully complied with the process. However, FTX still categorized him as part of the Chinese creditor group solely due to his passport, despite him being a tax resident in Singapore.
FTX proposed to assess legal compliance in 49 areas, where if not feasible, the areas will be classified as "restricted," allowing FTX to reallocate that amount. China accounts for 82% of the total 800 million USD in compensation claims classified as high risk.
Ji argues that transferring money through channels such as accounts in Hong Kong is legal and has been successfully carried out in the Celsius case, while also emphasizing that digital assets are recognized in China and the Hong Kong area with an advanced legal framework.