SEC Warns Could Challenge FTX’s Creditors’ Payments
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The Securities and Exchange Commission of the United States has issued a warning that it may object to the payment of outstanding debts to creditors of the defunct crypto exchange FTX if the exchange decides to use stablecoins as a form of repayment.
In a filing dated August 30 to the Bankruptcy Court in Delaware, the SEC‘s lawyers stated that while using stablecoins for creditor repayments may not be explicitly against the law, they still reserve the right to challenge the use of US-dollar pegged crypto assets for repayments.
After FTX’s bankruptcy in November 2022, the exchange has explored various options to compensate creditors, including a failed attempt to relaunch the platform.
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