PANews reported on July 22 that, according to Cointelegraph, the liquidation team of the bankrupt crypto exchange FTX has applied to the Delaware State Court for an extension to address over 90 objections to its $470 million cross-border payment freeze plan. This "motion for extension" will give the FTX asset management team more time to make statements about suspending payments to creditors in so-called restricted jurisdictions. The document was submitted on Sunday and a hearing is scheduled for Tuesday to address the original motion that sparked this legal dispute.
FTX's liquidation team initially proposed listing 49 jurisdictions, including China, as "restricted areas", with Chinese creditors accounting for 82% of claims (approximately $380 million). The FTX liquidation team stated in the motion that initiating payments to these regions could pose local legal risks, including criminal liability for executives. However, the plan was strongly opposed by creditors, with Chinese creditor representative Weiwei Ji stating that hundreds of investors are organizing a collective rights protection effort. Creditor Sunil Kavuri revealed that $1.4 billion in claims remain unresolved.
