The bankruptcy estate of cryptocurrency exchange FTX is seeking additional time from the court to respond to numerous objections regarding its plan to pause creditor repayments in several countries.
FTX's Request for Extension
In a filing submitted Sunday, FTX stated that it received more than 90 objections to its motion seeking to halt repayments in countries with unclear or restrictive cryptocurrency laws. A hearing is set for Tuesday to consider the estate's initial request.
Creditor Duties and Objections
Critics were quick to push back. Weiwei Ji, representing hundreds of Chinese creditors, stated on platform X that he has been working non-stop to respond to FTX’s latest court filing. Another user, known as 'Mr. Purple,' warned that the proposed process could leave many claimants with nothing: 'Selling *might* avoid the issue but that’s not a guarantee.'
Details of FTX's Payment Plan
FTX’s plan would impact $470 million in claims from creditors in so-called 'restricted jurisdictions,' with China accounting for roughly 82% of that total. The estate argues that making payments in these countries could expose its directors and officers to regulatory penalties, including fines or even criminal charges. FTX began repaying creditors in February, over two years after its collapse in November 2022.
The bankruptcy court is expected to address this matter this week, as the estate faces mounting pressure to clarify its position on international repayments.
