A recent submission by the SEC cautions FTX that the agency may oppose any efforts to repay creditors using stablecoins or other digital currencies.
During the FTX bankruptcy proceedings, several options were explored to optimize creditor recovery. These included the potential relaunch of the FTX exchange and the possibility of converting creditor claims into tradable tokens.
In its latest filing, the SEC raised concerns regarding FTX’s proposed refund strategy.
The filing makes it clear that, although the SEC hasn’t outright declared the suggested transactions as illegal, it has reserved the right to challenge them. The SEC specifically questioned the legality of repaying claims or earning profits from FTX’s crypto holdings.
Moreover, the filing criticizes the plan for lacking clarity on how the stablecoins would be allocated if the plan is approved.
The SEC has sought a four-month extension in its investigation related to Coinbase, pushing the deadline to February 2024, just after the US presidential election.
DZ Bank, Germany’s second-largest financial institution, has teamed up with Boerse Stuttgart Digital to offer cryptocurrency trading and custody services across its network of cooperative banks.
Charles Hoskinson, founder of Cardano, will meet with Argentina’s President Javier Milei in October to discuss blockchain’s role in shaping future economies.
Binance has seen a sharp rise in interest from institutional and corporate investors, with a 40% increase in participation this year, according to CEO Richard Teng.