What To Know:
- A US judge has asked FTX to revisit its exclusion policy, signaling hope for Chinese creditors long barred from repayment.
- Months of advocacy led by creditor Will (@zhetengji) have drawn judicial attention, marking a breakthrough in the case.
- Chinese users, who hold over 80% of restricted FTX assets, may finally be closer to recovering their frozen funds.
After three years of the collapse of FTX, Chinese creditors who were long barred from repayment, may be closer to recovering their funds. This might be the first time the most complex bankruptcy in crypto history has entered a decisive phase.
Chinese Creditors Get Closer to Recovering FTX Funds
The turning point for Chinese creditors expecting FTX funds return came after months of organized advocacy led by a creditor known as Will (@zhetengji). Will’s persistence has begun to draw judicial attention in the United States.
Interview with FTX China creditor Will: Judge’s questioning of the reasonableness of excluding Chinese users may bring a turning point; calls for more people to join the action. https://t.co/TVdMPK81MW
— Will的折腾纪 (@zhetengji) October 31, 2025
Global creditors of FTX have already received three rounds of payouts totaling about $1.6 billion. Yet thousands of Chinese users remain excluded from compensation, uniformly classified under “restricted regions.” Their accounts represent over 80 percent of the restricted asset pool, the largest overlooked group in the case.
In July, Will initiated a motion demanding the revocation of this classification and urging others to join the collective effort. His campaign, once seen as symbolic, has now begun to reshape the discussion inside the courtroom.
At a recent hearing, newly appointed Judge Owens openly questioned the rationale behind FTX’s exclusion policy. “Bankruptcy cases like BlockFi and Celsius compensated Chinese creditors—why can’t FTX?” he asked. Owens later instructed the FTX Recovery Trust to withdraw its motion and reassess its list of restricted countries. The comment ignited a ray of optimism for those who had been written off.
In a recent interview, Will described the hearing as a breakthrough born of persistence. “We persuaded some overseas Chinese creditors to change their residency information. A few recovered their assets,” he said. “But most people still have no idea this is even possible.”
That information gap remains severe, FTX estimates Chinese users make up around 4 percent of all creditor accounts, which is a figure that could translate to tens of thousands of victims. Will’s rights protection group, by contrast, has roughly a thousand members, many of whom remain silent or unreachable.
The FTX Recovery Trust, which manages the bankruptcy process, has faced growing criticism over its opacity. Led by former FTX lawyers, the team has the authority to label any account “disputed” until 2026 without providing an explanation. “My wife’s account met every condition,” Will said. “Still, it was frozen. There’s no accountability.”
Compounding the issue, third-party funds are reportedly taking up distressed claims at deep discounts. Some of these entities have been accused of spreading misinformation through influencers to push down claim prices before reselling at a profit. “They buy at 110 percent and sell later at 170,” Will explained. “Ordinary investors lose again.”
Observers have also raised questions about the lack of independent control. Even though the Department of Justice usually appoints external investigators in large bankruptcy cases, no such review has taken place in the FTX proceedings. Many creditors see that absence as a key factor behind the persistent opacity and irregularities in the liquidation process.
Judge Owens’s recent remarks have shifted the tone. His directive to revisit the restricted list could restore compensation rights for Chinese creditors if adopted. But any further delay could reignite tensions between the bankruptcy team and the creditor community.
For Will, who has financed all his legal motions himself, the fight is not just about his personal recovery. “I don’t take donations,” he said. “Once you do, your motives can be questioned. Some of these people lost their life savings—thirty or forty thousand dollars. If bureaucracy erases them, that’s the real injustice.”
His campaign has already led some creditors to recover partial funds and others to challenge their exclusion. Still, he warns that the majority remain cut off from reliable information. “Many people still believe they have no chance,” he said. “But this hearing shows the door hasn’t closed yet.”
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