A creditor from China associated with the defunct crypto exchange FTX has raised objections against a proposal that would potentially prevent the distribution of funds to users in certain jurisdictions, including China.
Key Takeaways:
A Chinese creditor is contesting a plan that may inhibit payouts in 49 jurisdictions.
Weiwei Ji, representing over 300 creditors, claims to have approximately $15 million across four verified FTX accounts.
Ji asserts that China should remain unrestricted, emphasizing the legal status of property and access to Hong Kong.
In a filing made with the Delaware Bankruptcy Court, Weiwei Ji formally opposed the plan on behalf of over 300 creditors from China.
Ji, who currently resides in Singapore for tax purposes, stated that FTX categorized him as a Chinese creditor based solely on his nationality as indicated on his passport.
FTX Creditor Claims $15M Across Four KYC-Verified Accounts
He reported that his family owns four Know Your Customer (KYC)-verified accounts with FTX, with total claims surpassing $15 million.
“We have adhered to all procedural requirements outlined in the plan. The proposed motion now threatens our right to distribution in a manner that is both arbitrary and inequitable,” Ji expressed in his objection.
This objection follows a motion filed by the FTX Recovery Trust that aims to assess claims across 49 jurisdictions identified as “potentially restricted,” which include China, Russia, and Pakistan.
The plan involves consulting with local legal experts to explore the feasibility of compliant distributions.
Should these distributions prove impossible, the affected jurisdictions could be labeled as restricted, allowing FTX to redirect those claims back into the trust.
The claims from these 49 jurisdictions tally around $800 million, with Chinese claims making up the bulk at approximately 82%, as reported by The Block.
FTX Claim Distribution
Restricted Jurisdictions: $470m
Chinese Holders of FTX Claims: $380m (82% of restricted)
KYC Not Completed – Bahamas: $290m
Disputed – Multiple Claims: $660m
Total Awaiting Solution: $1.4bn
Total Estimated Allowed Claims: $11bn
— Sunil (FTX Creditor Champion) (@sunil_trades) July 7, 2025
Ji contended that the categorization of China as a restricted jurisdiction is “unsupported by either fact or law.”
He referenced existing distribution channels, including accounts based in Hong Kong, and cited the Celsius Network case as a relevant precedent.
Moreover, he emphasized that despite a ban on crypto trading in mainland China, digital assets retain their legal status as property, while regulations in Hong Kong have become increasingly favorable towards cryptocurrencies.
“Distributing claims to Chinese creditors poses no legal risk to the Trustee or its agents and is a necessary step within the bankruptcy process,” Ji stated, urging the court to reject the proposed restrictions laid out in the motion.
Sam Bankman-Fried’s Release Date Set for 2044
Meanwhile, FTX founder Sam Bankman-Fried is now expected to be released from federal prison on December 14, 2044, after serving nearly 21 years of his 25-year sentence related to fraud linked to the FTX collapse.
He has also been levied with a fine exceeding $11 billion. Federal records indicate that Bankman-Fried has been transferred from New York to a facility in Oklahoma after spending almost two years in custody.
This relocation follows a reported stint in solitary confinement earlier in the month, prompted by his unauthorized interview with Tucker Carlson.
Bankman-Fried’s legal troubles began in August 2023 when Judge Lewis Kaplan revoked his bail due to allegations of witness tampering involving leaked diary entries from former Alameda CEO Caroline Ellison, a pivotal witness in his case.
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