Chinese Creditors Revolt: FTX Faces $470M Payout Freeze from 500+ Claimants

FTX's collapse just got messier—over 500 Chinese creditors are slamming the brakes on the exchange's attempt to freeze $470M in payouts. Who said crypto bankruptcies were boring?

Behind the numbers: A creditor mutiny unfolds

When FTX filed for Chapter 11, nobody expected a geopolitical twist. Now, mainland claimants—holding one of the largest foreign creditor blocs—are turning the screws. Their play? Force the court to acknowledge their claims before the platform's remaining assets vanish into legal fees and vaporized liquidity.

The cynical take: Another day, another crypto dumpster fire. At least this one comes with a $470M price tag and a front-row seat to decentralized finance's least decentralized moment—when the lawyers take over.

Concerns over fairness

Speaking on behalf of the Chinese creditors, Will argues that FTX’s MOVE contradicts earlier assurances.

He told CryptoSlate:

“We were told clearly: as long as we submitted our claims and voted in favor of the plan, we WOULD be entitled to receive our distributions like everyone else. Based on that understanding, we cooperated, our claims were verified, and we supported the reorganization plan in good faith.”

He argues that this reversal erodes trust in the process. FTX’s new legal move could deny them their rightful compensation because of their “nationality or perceived legal uncertainty.”

He said:

“This situation is not only unfair—it’s procedurally questionable. A confirmed plan should not be altered in a way that selectively strips rights from certain creditors after the fact. We believe such changes, especially those targeting a group of people based solely on jurisdiction, deserve close scrutiny from the court.”

FTX claims it is trying to avoid legal risk by not sending funds to countries where crypto use may be restricted.

However, critics see this as a dangerous precedent that could selectively undermine the rights of verified claimants after a reorganization plan has already been confirmed.

He concluded:

“At the end of the day, this is not just about money—it’s about fairness, credibility, and trust in the system. We are not asking for special treatment; we are asking to be treated equally under the same rules as everyone else. A confirmed distribution process should not be altered at the last stage to selectively exclude those who have already done everything required of them.”