Weiwei Ji, a Chinese creditor of FTX, filed an objection in the Delaware Bankruptcy Court this week over a motion that could block payouts in certain regions. Ji represents more than 300 Chinese claimants whose combined claims exceed $15 million.
The motion, if approved, would let FTX forfeit distributions in what it calls “restricted jurisdictions.” Ji says this plan is unfair and lacks a legal basis.
Objection Details
Ji, a tax resident of Singapore, was grouped as a Chinese creditor because he holds a Chinese passport. In his filing, he stated that he and his family opened four verified FTX accounts and followed every rule under the bankruptcy plan.
He argues that the new motion threatens their right to recover funds without any solid reason. FTX has listed 49 jurisdictions as restricted.
FTX representative Sunil shared an update on X(Twitter), showing that judicially restricted claims now total $470 million. Chinese claimants make up $380 million of that sum, over 80%. These limits arise from sanctions or local laws that curb crypto activity in certain areas.
Reaction from Chinese Claimants
Many Chinese users have voiced concern and are seeking U.S. legal help. One claimant, known only as “Will,” told media outlets that China bans crypto trading but still recognises ownership rights.
He said rightful holders deserve U.S. dollar refunds. Will has hired a New York lawyer to fight the exclusion of wire transfers to Chinese accounts.
FTX’s motion suggests it will hire local lawyers in each jurisdiction to see if it can comply with the rules. If it cannot, FTX would label the region as restricted.
Creditors could contest these labels in court. If they do not or if their objections fail, FTX could redirect their claims back into the trust for redistribution.
Ji pointed to the Celsius Network case as an example. There, U.S. dollar claims went to users through Hong Kong bank accounts despite local bans on crypto trading. He said this shows FTX can lawfully send funds to Chinese creditors without breaking any laws.
Recognition of Crypto as Property
In his objection, Ji noted that Chinese law treats crypto as legal property. He also highlighted that Hong Kong has begun rolling out clear rules for digital assets. This supports his view that FTX should not lump all Chinese users into a blocked category.
Regulatory Backdrop and Next Steps
The FTX bankruptcy continues to draw scrutiny. Regulators worldwide are watching how the company handles claims in places with strict crypto rules.
Creditors have a window to challenge any jurisdiction labels, and the court must decide if FTX followed proper guidelines.