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Chinese creditors affected by FTX’s bankruptcy are challenging the exchange’s request to delay payouts in restrictive jurisdictions. Over 500 creditors are organizing legal action, citing unfair treatment and procedural concerns. The group argues FTX’s move contradicts earlier assurances and undermines trust in the process.
- FTX seeks court approval to withhold $470M from creditors in restrictive jurisdictions, with $380M tied to Chinese users.
- Over 500 Chinese creditors are organizing legal challenges, citing broken promises of equal payout eligibility.
- Critics argue FTX's move sets a risky precedent for altering confirmed bankruptcy plans post-approval.
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