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.
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