FTX Seeks Delay in $470M Foreign Claims Freeze Dispute

FTX's bankruptcy estate is seeking a delay from a Delaware court to address over 90 objections to its proposal to freeze approximately $470 million in claims from creditors in 49 "restricted foreign jurisdictions." The estate argues that making these repayments could lead to fines, personal liabilities, or criminal penalties, while creditors fear their claims may become worthless.

FTX Seeks Repayment Freeze Amidst Legal Battle

FTX's bankruptcy team has requested an extension from the Delaware court to respond to a significant number of objections concerning its plan to halt payments to creditors located in what it terms "restricted foreign jurisdictions." This move impacts claims totaling $470 million, with Chinese creditors representing the largest portion at approximately $380 million (82%).

The estate's rationale for the freeze is to avoid potential legal repercussions, including fines, personal liabilities for directors and officers, and even criminal penalties, that could arise from initiating repayments in countries with ambiguous or restrictive cryptocurrency laws.

List of potentially restricted jurisdictions in FTX’s court motion on July 2, 2025

Creditor Outcry and Unresolved Claims

Creditors have voiced strong opposition to FTX's proposal, expressing concerns that their claims could be rendered worthless if the freeze is approved. The situation has sparked considerable frustration among those affected.

• Weiwei Ji, representing hundreds of Chinese creditors, highlighted the intense effort required to counter FTX's omnibus reply to their objections.

• A crypto community member, "Mr. Purple," suggested that if approved, the process could effectively reduce these claims to zero.

• Currently, there remains an estimated $1.4 billion in unresolved FTX claims.

Background on FTX Repayments

FTX began repaying creditors in February, more than two years after filing for bankruptcy in November 2022. The current dispute over foreign claims adds another layer of complexity to the ongoing bankruptcy proceedings.

• The "Motion for Leave" filed by the FTX estate aims to secure more time to build its case for halting repayments.

• A hearing was scheduled to address the original motion that initiated this legal challenge.

The outcome of this legal battle will significantly influence the distribution of assets and the final resolution of the FTX bankruptcy case for a substantial number of international creditors.

Sources

• Bitget Daily Digest (7.22)｜Over 90% of ETH Addresses in Profit, FTX Seeks Delay in Responding to Objections,
  $470M in Claims May Be Frozen, Public Companies Establish DOGE Corporate Treasury, Bitget.

• FTX Files for Delay as Creditors Fight Repayment Freeze on $470M Claims, Cointelegraph.

• FTX Estate Seeks More Time to Halt Repayments in 49 Countries, AInvest.

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