Creditors oppose freezing $470 million overseas claims, FTX seeks extension to respond

ChainCatcher news, according to Cointelegraph, the FTX liquidation team has submitted a request for an extension to the Delaware court, seeking more time to respond to over 90 creditor objections raised against its plan to freeze a $470 million multinational payment scheme. The plan intends to designate 49 jurisdictions, including China, as "restricted areas," suspending compensation payments to relevant creditors.

FTX stated that this move aims to avoid potential legal risks, especially the criminal liabilities that executives may face. Currently, claims from Chinese creditors account for 82% (approximately $380 million) of the total. However, the plan has faced strong opposition, with Chinese creditor representative Weiwei Ji stating that hundreds of investors have organized to collectively defend their rights. Another creditor, Sunil Kavuri, revealed that approximately $1.4 billion in claims remain unresolved. A related hearing will be held this Tuesday.