A Chinese lender has Filed A resistance to a motion from the FTX estate to pause payouts to residents in constituents with laws or regulations that restrict cryptocurrency transactions, according to a court filing Tuesday.
The lender, Weiwei Ji, said that even though they lived in Singapore, they were classified as a Chinese lender for handling a Chinese passport. Ji noted that the objection was submitted on behalf of Ji and a growing group of Chinese creditors – it was reported that more than 300 individuals, according to the filing.
The objection raised two major arguments: first, that FTX arrangements were made to the US dollar, which is a standard form of legal payment. Second, it noted that cryptocurrency distribution is legal in China, with digital assets that make up “personal possession.”
“My family is holding four KYC verified accounts with aggregate claims of over $ 15 million USD … We have fully complied with each procedure requirement under the plan. The proposed movement is now detrimental to our distribution right in an irrational and unequal way,” Ji argued with the document.
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The detailed movement of the FTX estate
The ftx estate Filed A movement to pause payouts to residents of restrained countries on July 2, stating “the distribution made by or on behalf of the FTX Recovery Trust in constituencies that violate legal restrictions may undergo fines and penalties, including personal responsibility for directors and officials, and/or criminal penalties.
The motion from the FTX estate identified 49 countries without clear or restricted crypto lawsAreas that can lead to risks due to complex legal cross-border complications.
The movement was filed in the US Bankruptcy Court in Delaware. According to the movement, 5% of the value of the allowable claims is due to residents in these restrictions.
In addition to China, potential restriction countries include Russia, Egypt, Afghanistan, Tunisia, Zimbabwe, Ukraine and Moldova.
The FTX Estate used Moldova as an example of its movement. “In Moldova, it is a criminal offense to engage in the” activity of providing services about virtual ownership … in the territory of the Republic of Moldova, including cases where this activity is auxiliary/supplementation of basic activity. “
The ftx estate Payment began on February 18Starts with members of the comfort class. Payment values were made based on the amount of digital assets at the time of the exchange of exchanges in November 2022, a policy that avoids certain creditors.
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