A recent filing from the SEC warns FTX that the agency may oppose any attempt to repay creditors with stablecoins or other digital assets.
Throughout the FTX bankruptcy, various strategies were considered to maximize creditor recovery, ranging from a potential relaunch of the FTX exchange to distributing creditor claims as tradable tokens.
In a recent filing, the SEC expressed concerns about FTX's refund plan.
The SEC’s filing emphasizes that while the agency did not explicitly declare the proposed transactions illegal, it reserved the right to challenge them. Specifically, the SEC questioned the legality of refunding claims or profiting from FTX’s crypto assets.
Additionally, the filing criticizes the plan for its lack of details on how the stablecoins would be distributed if the plan is approved.
*This is not investment advice.