Insight: FTX Claims Process for Chinese Users Affected by Crypto Ban Lacks Legal Basis, Creditors to be Compensated in USD

By: theblockbeats.news|2025/07/06 13:35:54

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.

DDC Enterprise Limited has today announced the additional purchase of 50 bitcoins, increasing its total bitcoin holdings to 2,118 bitcoins. This latest acquisition marks DDC's seventh consecutive week of executing its bitcoin accumulation plan. Based on its current holdings, DDC is ranked 34th in the global publicly traded companies bitcoin holdings list.

From Mining Enterprise to Infrastructure Builder, Bitdeer Unpacks the Survival Logic behind BTC

Profit margins nearing the red line, miners are starting to use Bitcoin as fuel.

How Can Agentic Commerce Empower AI to Start Making Money?

The first wave of moneymaking AIs has arrived, which projects are worth paying attention to

February Correction: Is the Crypto Market Bottoming Out?

Based on historical experience, the most intense phase of this downturn may be about to end.

AI Payments Through the Lens of Fintech Giants: Five Levels, Stablecoin Infrastructure, Next-Gen Globalized Commerce

Stripe took fifteen years to turn seven lines of code into a business empire that powers 1.6% of the global GDP. Its next move is to define the next generation of global business rules.

WEEX LALIGA Partnership 2026: Where Football Excellence Meets Crypto Innovation

WEEX becomes official crypto exchange partner of LALIGA in Hong Kong and Taiwan. Discover how this partnership brings together football excellence and trading discipline.

AI Apocalypse, a massive short squeeze

AI is not the doomsday prophecy, but the dawn of a new era of abundance stemming from the collapse of cognitive cost.