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Opinion: There is no legal basis for confiscating FTX claims from China users due to the encryption ban, and FTX claims are denominated and settled in US dollars."

On July 6, Chinese encryption KOL @zhetengji expressed its opinion on the issue of "FTX creditors claiming that they may confiscate claims from China users" and said: "FTX's creditor's rights are denominated and settled in US dollars, and have now entered the compensation distribution stage, which has nothing to do with cryptocurrency supervision. There is no legal risk for China citizens to receive US dollar compensation. The FTX Recovery Trust's motion lacked proper legal basis from the beginning. In addition, in the bankruptcy case of Celsius, it was also an American cryptocurrency company. They paid creditors through bank wire transfers, and China creditors also successfully received compensation."@ Zhetengji believes that FTX can compensate China creditors in the same way. Previously, FTX creditor representative Sunil posted a post on social media saying that among the claims in FTX restricted countries, 82% of the claim funds belonged to China users, but currently cryptocurrency transactions in China are not allowed and there are no authorized distributors. According to documents provided by Sunil, FTX will seek legal advice, which will do so if allocation can be made to a potential restricted foreign jurisdiction, and may confiscate the allocation if it is determined that the resident belongs to a restricted foreign jurisdiction and the claim will be disputed.

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