Insight: FTX Claims Process for Chinese Users Affected by Crypto Ban Lacks Legal Basis, Creditors to be Compensated in USD
BlockBeats News, July 6th, Chinese crypto KOL @zhetengji commented on the issue of "FTX Creditors Claiming Possible Confiscation of Chinese User Claims":
"FTX's debt is denominated and settled in USD and has now entered the compensation distribution stage, which has nothing to do with cryptocurrency regulation. Chinese citizens receiving USD compensation do not face any legal risks. The FTX Recovery Trust's motion lacked a legitimate legal basis from the beginning.
Furthermore, in the Celsius bankruptcy case, which is also a U.S. cryptocurrency company, they compensated creditors through bank wire transfers, and Chinese creditors also received compensation smoothly." @zhetengji believes that FTX can compensate Chinese creditors in the same way.
Earlier, FTX creditor representative Sunil posted on social media that in FTX's claims from restricted countries, 82% of the claim funds belong to Chinese users. However, cryptocurrency trading is currently not allowed in China, and there are no authorized distributors.
According to the documents provided by Sunil, FTX will seek legal advice, and if it is possible to distribute to potential jurisdictions outside the restricted foreign jurisdictions, it will do so. If it is determined that residents belong to restricted foreign jurisdictions and claims will be controversial, the distribution may be confiscated.
You may also like
Cape Verde 2-3 Argentina: The Underdog Team That Stunned the World in Defeat
Cape Verde's run ended in a 3-2 defeat to Argentina, but their journey — three unbeaten draws, one heroic goalkeeper, and a fight that pushed the defending champions to the brink — is the kind of story markets recognize too: small caps can rattle blue chips long before anyone expects it.
A valuation of 8 billion dollars, doubling in 8 months! What makes the crypto-friendly bank Erebor Bank stand out?
340 billion valuation: Li Yanhong's largest IPO, a seat in Kunlunxin's shares is hard to come by
Stablecoins are the "royalists" of the crypto world: Open USD brings the old currency system into play
Semiconductor stocks plummet, yet Anthropic wants to create a 2nm chip
Where is Zhao Changpeng's billion-dollar investment going? YZi Labs' investment landscape fully revealed
Ethereum Foundation Report: A Basic Guide to Ethereum for Governments and Financial Institutions
A pre-announced harvesting case: After the cryptocurrency price dropped by 99%, the public chain Saga exited to transform into AI
When American giants collectively "defect" from Chinese AI models
BIS Report Compliance Observation: The Real Risks of Stablecoins, Not Just "Depegging"
Portugal 2-1 Croatia: Ronaldo's 20-Year Knockout-Stage Drought Ends With a Debt Finally Collected
Portugal beat Croatia 2-1 in the 2026 global football championship's knockout rounds as Ronaldo scored his first-ever knockout-stage goal, Gonçalo Ramos struck a stoppage-time winner, and VAR ruled out a late equalizer for offside.
Bitcoin Price Prediction July 2026: Will BTC Recover to $70K or Drop Below $55K?
A South Korean company that learned the strategy of hoarding coins, from a bull market to delisting?
WEEX API Broker Program: Turn Your Trading Platform Into a Revenue Engine
How to choose between buying discounted ETH, Bitmine, and SharpLink?
Wosh: Inflation has cooled in recent weeks, AI is reshaping the economy, and forward guidance has lost its necessity
From Pump.fun to Collector Crypt: Has Solana's income throne changed hands?
Dan Bin's latest speech: Don't miss out on a great era
Cape Verde 2-3 Argentina: The Underdog Team That Stunned the World in Defeat
Cape Verde's run ended in a 3-2 defeat to Argentina, but their journey — three unbeaten draws, one heroic goalkeeper, and a fight that pushed the defending champions to the brink — is the kind of story markets recognize too: small caps can rattle blue chips long before anyone expects it.
A valuation of 8 billion dollars, doubling in 8 months! What makes the crypto-friendly bank Erebor Bank stand out?
340 billion valuation: Li Yanhong's largest IPO, a seat in Kunlunxin's shares is hard to come by
Stablecoins are the "royalists" of the crypto world: Open USD brings the old currency system into play
Semiconductor stocks plummet, yet Anthropic wants to create a 2nm chip
Where is Zhao Changpeng's billion-dollar investment going? YZi Labs' investment landscape fully revealed
Popular coins
Latest Crypto News
