SEC Cracks Down on FTX Repayment Plans!

The post SEC Cracks Down on FTX Repayment Plans! appeared first on Coinpedia Fintech News

FTX is in trouble again! Recently, the SEC has filed a warning against the FTX estate, a possible signal to object to using stablecoins or other digital assets to repay creditors. The agency, alongside the U.S. Trustee, also objects to a discharge provision that would limit future liabilities of the FTX debtors. FTX plans to repay creditors in cash or stablecoins despite proposals to restart the exchange or use tokenized claims trading. The SEC’s filing raises concerns about the legality of these plans and the lack of clarity on stablecoin distribution. Meanwhile, FTX’s bankruptcy tab has soared past $800 million!