The regulator said that while stablecoin-denominated creditor repayments may not be illegal, it “reserves its rights” to challenge transactions involving crypto assets.
The United States Securities and Exchange Commission has warned that it could challenge payments made to creditors of the defunct crypto exchange FTX if the exchange chooses to return funds using stablecoins.
In an Aug. 30 filing to the United States Bankruptcy Court in Delaware, lawyers from the SEC said that while creditor repayments made with stablecoins may not be technically illegal, it reserved the right to challenge repayments made with US-dollar pegged crypto assets.
Following the collapse of the exchange in November 2022, FTX has pursued several potential methods to make creditors whole, including a now-binned plan to reboot the exchange.
