OKX Transfers 6.275M USDT to FTX/Alameda: Creditor Repayments Start?

• PeckShield flagged a $6.27M USDT switch from OKX to an FTX/Alameda pockets.
• FTX’s $12.7B creditor settlement consists of $8.7B restitution and $4B disgorgement.
• Reimbursement in cryptocurrency faces potential SEC opposition over stablecoins.

Blockchain safety agency PeckShield noticed transfers from cryptocurrency change OKX to wallets linked to the bankrupt FTX change. Early Friday morning, an Alameda/FTX-labeled tackle acquired 6.275 million USDT from OKX. The rationale behind this switch stays unclear, however it may point out the beginning of FTX creditor repayments.

In July, FTX reached a $12.7 billion creditor settlement with the Commodity Futures Buying and selling Fee (CFTC), pending court docket approval. This marked an finish to a 19-month authorized battle between the CFTC and the change. A couple of weeks later, New York Decide P. Kevin Castel authorised a consent order requiring FTX to pay defrauded buyers $12.7 billion in restitution.

Learn additionally: FTX Reorganization Plan Wins 95% Creditor Approval

The settlement consists of $8.7 billion in restitution and $4 billion in disgorgement. FTX’s reorganization plan goals to supply a 118% return to 98% of collectors, significantly these with claims underneath $50,000.

CFTC’s Lawsuit Towards FTX

In December 2022, the company filed a lawsuit towards FTX, its former CEO Sam Bankman-Fried, and its sister agency Alameda Analysis. CFTC accused the change of fraud and misrepresenting FTX as a digital commodity platform.

Learn additionally: Coinbase CLO Calls Out SEC’s Unclear Stance on FTX Reimbursement Plan

In the meantime, many collectors have expressed a need for compensation in cryptocurrency, because the market has elevated by 166% because the chapter submitting. This desire may pose challenges, because the SEC is able to oppose any plan to repay collectors in stablecoins. The SEC has maintained its authority to problem crypto-related transactions, together with these involving stablecoins pegged to the U.S. greenback.

Whereas a particular stablecoin has not been chosen for compensation, the 2 largest stablecoin issuers, Tether (USDT) and USD Coin (USDC), have been into consideration. Nevertheless, each issuers have confronted their very own obstacles.

Tether has been underneath scrutiny for not offering audited monetary statements. In the meantime, USDC issuer Circle has a extra clear status however skilled a $3.3 billion publicity. The latest USDT switch from OKX to an FTX/Alameda pockets may counsel a leaning in direction of Tether’s stablecoin for creditor compensation.