FTX Files for Delay as Creditors Fight Repayment Freeze on $470M Claims
The FTX estate is seeking a delay in Delaware court to respond to over 90 objections against its proposed halt to repayments in certain foreign jurisdictions. The “Motion for Leave” aims to provide more time for the estate to present its case, with a hearing scheduled for Tuesday. The original motion seeks to stop repayments to countries with vague or restrictive crypto laws, citing potential fines and criminal penalties for directors and officers. This affects creditors in 49 countries, totaling $470 million, with Chinese residents representing 82% of claims. Creditors have criticized the estate's efforts, with concerns that the process may lead to claims becoming worthless. There are still $1.4 billion in pending claims against FTX. Repayments to creditors began in February 2023, following the bankruptcy filing in November 2022.
