FTX pays off creditors, and the SEC questions the legality of these transactions.

In a couple of weeks, the bankrupt exchange FTX will begin to partially distribute $16 billion to creditors. The full debt is planned to be repaid by the end of the fourth quarter of 2024. Traders expect that a significant part of the money will return to the market and lead to an influx of liquidity. But there are nuances ...

After the temporary administration of FTX submitted an updated plan for repaying the debt to the company's creditors for approval by the bankruptcy court, the SEC intervened in the debt distribution process. According to the commission, it is unacceptable to pay off creditors' claims with digital assets and, accordingly, the agency is set to challenge the legality of such transactions.

On the one hand, the SEC's actions are logical: the regulator does not want creditors to repay their debts in some candy wrappers from the top 500.

On the other hand, it would be wiser to repay the debts in the same assets as in the accounts. 

So everything is complicated, but a start has been made: compensation payments will begin. And regardless of the currency in which payments are made, this precedent is indicative. We are waiting for the return of liquidity and increased confidence in the crypto market.

#SEC #FTX #BankmanFried