TechFlow news — The U.S. Securities and Exchange Commission (SEC) recently warned FTX in a filing, reserving its right to challenge the legality of FTX using "crypto asset securities" to repay creditors or profit from them.
The SEC noted that FTX's plan does not clearly specify who would distribute stablecoins (if approved). While the SEC has not directly declared such actions illegal, it stated it reserves the right to challenge activities involving crypto asset transactions.
Meanwhile, the U.S. Trustee, responsible for overseeing the bankruptcy proceedings, opposes granting FTX debtors immunity from future legal claims by creditors.
Notably, administrative costs in the FTX bankruptcy case continue to rise. According to X user Mr. Purple, employee expense claims have exceeded $800 million.
FTX currently plans to repay creditors in cash or dollar-pegged stablecoins, although some creditors have called for repayment in cryptocurrency to cover their losses.
