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Over 500 Chinese Creditors Challenge FTX Over $470M Payout Freeze
In a significant development, more than 500 Chinese creditors of the defunct cryptocurrency exchange, FTX, have collectively challenged the company’s request to freeze payouts totaling approximately $470 million. This move has raised concerns about fairness, transparency, and procedural integrity.
According to reports, the affected individuals claim that they were assured that, as long as they submitted their claims and voted in favor of the plan, they would be entitled to receive their distributions like everyone else. However, FTX’s recent legal maneuver has led them to question the company’s commitment to its earlier assurances.
The creditors are advocating for equal treatment under the law, emphasizing that a confirmed distribution process should not be altered at the last stage to selectively exclude those who have already done everything required of them. In essence, they are seeking fairness and transparency in the payout process.
As reported by CryptoSlate, this decision has sparked concerns among the affected individuals, with some having already sent formal objections to the bankruptcy court.
Source: cryptoslate.com
