Customers have been waiting almost two years for compensation. Patience is wearing thin as a potential SEC holdup looms, driven by the regulator’s stance that nearly all digital assets qualify as securities.

FTX promised to repay up to $16.3 billion to users, but the SEC is concerned about refunds made through stablecoins.

The U.S. Securities and Exchange Commission (SEC) may have thrown a spanner in the wheels of the confirmation of the FTX bankruptcy plan, according to a court filing on Friday. The SEC said that it may challenge any distributions involving crypto assets to creditors.

The FTX bankruptcy has led to various recovery proposals, including restarting the exchange or issuing new tokens to represent creditor claims. This summer decentralized platforms such as Found.xyz and Figure

Crypto investment firm Galois Capital Management will pay a $225,000 fine over Securities and Exchange Commission allegations that it broke rules for safeguarding client assets, including holding some of them in accounts with now bankrupt exchange FTX.

The U.S. Securities and Exchange Commission (SEC) may oppose the plan proposed by bankrupt cryptocurrency exchange FTX to repay creditors using U.S. dollar-pegged stablecoins. What Happened: In a court document,

The United States Securities and Exchange Commission (SEC) has expressed concerns about FTX’s proposed plan to repay creditors using stablecoins, according to an August 30 court filing in the United States Bankruptcy Court in Delaware.

The US SEC warned it could challenge FTX’s stablecoin repayment plan. Industry players criticize the regulator for overreaching its authority.