According to Cointelegraph, Foresight News reports that the FTX liquidation team has submitted an extension application to the Delaware State Court, seeking more time to respond to over 90 creditor objections regarding its frozen $470 million cross-border compensation plan. "Given the large number of objections received before and after the objection deadline, the FTX Recovery Trust needs additional time to draft, finalize, obtain approval, and submit a response." The plan proposes to list 49 jurisdictions, including China, as "restricted areas" and suspend compensation payments to related creditors.
FTX stated that this move aims to avoid potential legal risks, especially potential criminal liability for executives. Currently, Chinese creditors' claims account for 82% (approximately $380 million). However, the plan has been strongly opposed, with Chinese creditor representative Weiwei Ji stating that hundreds of investors have been organized for collective rights protection. Another creditor, Sunil Kavuri, revealed that approximately $1.4 billion in claims remain unresolved. The related hearing will be held this Tuesday.
