
The U.S. Securities and Exchange Commission (SEC) has issued a warning to the FTX estate regarding its plan to repay creditors using stablecoins and other digital assets. The SEC, in collaboration with the U.S. Trustee, has expressed concerns that such payments could face legal challenges, as detailed in a recent court filing. This warning comes as part of a broader scrutiny of FTX's bankruptcy plan, which includes a contentious discharge provision that shields estate administrators and third-party advisors from legal liabilities. The SEC's stance indicates potential legal hurdles for FTX if it proceeds with its current repayment strategy.
SEC May Challenge FTX Repayments If They Are Made Using US-Denominated Stablecoins 💥🚨 Good idea or not? 🤔💭 https://t.co/rnP7Q7S2HP
.@SECGov has said that it may challenge distributions involving crypto as part of the FTX bankruptcy distribution plan, a court filing revealed. By @amitoj. https://t.co/Sm9Z1MXWpI
SEC VS. FTX: LEGAL SHOWDOWN HITS THE CRYPTOVERSE The SEC just flexed on FTX’s bankruptcy plan, joining the chorus of haters that includes the US Trustee and some creditors. They’re gunning for that sketchy discharge provision that protects estate admins and third-party advisors… https://t.co/mNCeT27MZZ







