The bankrupt cryptocurrency exchange FTX has filed for a delay in Delaware court to respond to numerous creditor objections.
FTX's Request for Payment Delay
The FTX estate has approached a Delaware court seeking additional time to prepare a response to over 90 objections to its proposed halt on repayments to creditors in so-called "restricted jurisdictions." The filing was made on Sunday, with a hearing scheduled for Tuesday.
Responses from Creditors
Some creditors have expressed dissatisfaction with FTX's efforts to block repayments. Among them is Weiwei Ji, who represents hundreds of Chinese creditors. Ji stated, "Since this morning, I haven’t taken a single break after seeing FTX’s omnibus reply to our objections." A crypto community member named "Mr. Purple" remarked that the situation is actually "worse than they think."
Background on FTX Bankruptcy
FTX began repaying its creditors in February 2023, more than two years after filing for bankruptcy in November 2022. The process affects creditors in 49 countries, with total claims amounting to $470 million. Chinese residents make up the largest group of claims, accounting for 82% of the total.
FTX's request for a delay in payments highlights the complexity of the company's bankruptcy situation and rising tensions with creditors. The court's response in the coming days will be critical.
