Breaking news from the Chinese community! Backpack will open a bond claim channel for FTX users in China and Russia.

In the FTX bankruptcy liquidation case, the handling plan for "restricted countries" creditors has been highly controversial, especially as the substantial claims of users from China and Russia face the risk of being "legally confiscated." However, recent sudden news in the Chinese crypto world has brought a glimmer of hope to these troubled users. According to AB Kuai.Dong's revelation, multiple sources indicate that Backpack plans to launch a bond market function to take over the previously unrecognized claims of Chinese and Russian users by FTX. This function is expected to go live soon, and users will need to synchronize their FTX account information to the Backpack platform before they can initiate claims.

FTX Creditors Dilemma: Chinese and Russian Users Face Discrimination

Previous reports indicated that Chinese users' $380 million in FTX claims may not be redeemable, accounting for 82% of the total claims of $470 million in restricted regions. This makes Chinese creditors the most affected group.

The bankruptcy of FTX has raised concerns about the payment of creditors in countries with unclear or restrictive cryptocurrency regulations. On Wednesday, the FTX estate filed a motion with the U.S. Bankruptcy Court in Delaware seeking authorization to freeze distributions to creditors from "potentially restricted foreign jurisdictions" by the FTX recovery trust.

The cryptocurrency laws in these jurisdictions (a total of 49 countries) are unclear or highly restrictive, and the complex impacts of cross-border laws may pose risks. The document states: "Distributions made by FTX to jurisdictions that violate these legal restrictions, either through the restoration of trust by FTX or on behalf of FTX, may trigger fines and penalties, including personal liability for directors and executives, and/or criminal penalties of up to imprisonment."

China and Russia have prominently entered the list of countries. The heritage management agency stated that although the regulations of these 49 countries vary, they generally prohibit individuals or entities from engaging in any activities related to digital assets, including crypto trading or distributing crypto-related profits to residents within these jurisdictions. For example, in Macau, "the relevant departments in mainland China clearly prohibit financial institutions and non-bank payment institutions from providing services for these tokens and virtual currencies."

Backpack's solution: accepting limited debt rights

As FTX creditors face difficulties, Backpack's new plan brings hope to users in China and Russia. X user "Neighboring Mountain" pointed out that the credibility of the information is relatively high, and Backpack's officials have not denied it. Additionally, founder Armani Ferrante has liked related tweets, increasing the reliability of the news.

The bond market feature planned for Backpack aims to take over the debts of Chinese and Russian users that were previously unrecognized by FTX. This means that Backpack may act as an intermediary platform, providing these restricted creditors with a way to monetize their claims.

How to initiate a claim?

According to the leak, users need to sync their FTX account information to the Backpack platform before they can initiate a claim. This feature is expected to launch soon. The specific operational details are still pending further announcement from Backpack, but this undoubtedly provides a new solution for affected users.

The news that the Backpack project plans to open a bond claim channel for FTX users in China and Russia brings new opportunities to this long and complex bankruptcy liquidation case. This initiative not only hopes to help hundreds of thousands of trapped users recover some assets, but it may also provide new solutions for similar cross-border cryptocurrency bankruptcy cases in the future. However, the specific implementation details and final effects still need to be closely monitored.