FTX creditors in China are facing delays in distribution amid legal scrutiny.

FTX's delay in distributing compensation to Chinese creditors arose after a legal review was conducted. According to Sunil, an activist representing creditors, 82% of requests from the restricted area – primarily China – are facing obstacles. The FTX Recovery Trust is assessing the legality of payments in these regions. If local laws prohibit distribution, compensations could be permanently be blocklisted, causing anxiety for many Chinese creditors. The Chinese cryptocurrency community has responded strongly, calling for transparency and legal clarity. Influential accounts like @zhetengji criticized FTX's decision and demanded the public release of information. The debate continues on social media as FTX faces complex legal challenges in reimbursing users in restricted areas.