SEC warns FTX against paying creditors back in stablecoins, other crypto

[bbc.reporter]

This uncle Gary is certainly being very cruel to use. He reserves the right to challenge stablecoin and cryptocoin distribution to the creditors. He does not want new inflows of very much needed funds to enter and pump the cryptospace hehhehe.

If the creditors are paid in American dollars and fiat currencies, how much of this will again enter the cryptospace?



Now, in a recent filing, the Securities and Exchange Commission has warned FTX that it reserves the right to challenge the legality of paying back claims or otherwise trying to make money from its stash of "crypto asset securities." The SEC's filing also notes that the plan fails to specify who would distribute the stablecoins, should that provision be approved.

The SEC didn't outright state that such an action would be illegal, writing, "The SEC is not opining as to the legality, under the
federal securities laws, of the transactions outlined in the Plan," but notes that the agency, "...reserves its rights to challenge transactions involving crypto assets."

Read in full https://www.theblock.co/post/314069/sec-warns-ftx-against-paying-creditors-back-in-stablecoins-other-crypto

[OmegaStarScream]

This uncle Gary is certainly being very cruel to use. He reserves the right to challenge stablecoin and cryptocoin distribution to the creditors. He does not want new inflows of very much needed funds to enter and pump the cryptospace hehhehe.

If the creditors are paid in American dollars and fiat currencies, how much of this will again enter the cryptospace?
-snip-

Isn't it confirmed already that they will be paying creditors back in fiat though? Or there could be a change?

Given that the FTX incident is not as old as Mt.gox case, I think it's safe to assume that most people would probably buy back, and stick around.

[bbc.reporter]

There were some articles that mentioned that their payment will be in fiat, however, we cannot be quite certain if this was confirmed or signed officially. Why would the SEC mention that they will oppose or challenge any payment of the creditors' claims in stablecoins and cryptocoins? This makes it appear that payment in fiat is not official.

Also, this image is being shared in social media. According to this there willbw $16 billion returned to the creditors of FTX.



I am quite certain that this will certainly pump the cryptospace if this was paid in stablecoins hehehehehe.

[Questat]

just recently this news came up..

Customers of failed crypto firm FTX set for refunds

And according to reports, users are being paid in fiat, so it’s likely the same will happen for creditors. Usually, in situations like this, creditors are first in line for payment, with users being a lower priority. With $16 billion recovered, it seems like that could be enough to pay both the creditors and the users whose funds were frozen when bankruptcy was declared.