The FTX cryptocurrency exchange’s bankrupt estate is requesting a delay from a Delaware court. This comes as they face over 90 objections to their proposed cessation of repayments in certain international jurisdictions, as revealed in a court document reviewed by Cointelegraph.
The “Motion for Leave” would provide the FTX estate additional time to construct its argument for stopping repayments to creditors in these so-called restricted jurisdictions. The document was submitted on Sunday, with a hearing set for Tuesday to discuss the initial motion that instigated the legal conflict.
“Given the high volume of Objections received up until and following the Objection Deadline, the FTX Recovery Trust needed more time to create, finalize, get approval for, and file the Reply,” the FTX estate stated.
The original motion of the estate aimed to cease repayments to countries with unclear or restrictive cryptocurrency regulations. The estate argued that initiating repayments to residents from these countries might lead to fines, penalties, personal liability for directors and officers, and potentially even incarceration.
This decision impacts creditors in 49 countries, with claims amounting to $470 million. Chinese residents form the majority group, accounting for 82% or $380 million of claims in these restricted countries.
The FTX estate has faced backlash from certain creditors for its attempts to halt repayments. One such critic is Weiwei Ji, claiming to represent hundreds of Chinese creditors.
According to Sunil Kavuri, an FTX creditor, $1.4 billion in FTX claims are still awaiting resolution. The FTX estate initiated repayments to the exchange’s creditors in February, over two years after filing for bankruptcy in November 2022.
