financetom
Cryptocurrency
financetom
/
Cryptocurrency
/
New York Judge Approves $12.7 Billion Settlement for FTX and Alameda to Repay Creditors
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
New York Judge Approves $12.7 Billion Settlement for FTX and Alameda to Repay Creditors
Aug 8, 2024 6:17 AM

United States District Judge Peter Castel has finalized a $12.7 billion settlement, obligating the bankrupt cryptocurrency exchange FTX and its sister company Alameda Research to compensate the formers creditors.

This decision is part of a settlement with the United States Commodity Futures Trading Commission (CFTC).

Judge Approves $12.7 Billion Settlement

Judge Castels approval, filed on August 7, concludes a 20-month-long lawsuit initiated by the CFTC.

The filing mandates that FTX Trading and Alameda jointly pay $8.7 billion in restitution to those who incurred losses and $4 billion in disgorgement for gains obtained through their violations.

The consent order also permanently bans FTX and Alameda Research from cheating or defrauding, or attempting to cheat or defraud, willfully deceiving, or attempting to deceive customers or other persons.

They are also banned from owning or entering into any transactions involving digital asset commodities and from ever buying or selling digital asset commodities on behalf of third parties.

The Lawsuit Details

The lawsuit, initiated in December 2022, accused FTX, its former CEO Sam Bankman-Fried, and Alameda Research of engaging in fraud and misrepresentation by promoting FTX.com as a digital commodity asset platform, resulting in customer losses of $8 billion.

The CFTC originally pursued a $52.2 billion claim, which has now been settled at $12.7 billion. FTX and Alameda agreed to this settlement on July 12, with final approval granted by Judge Castel on August 7. The CFTC did not also seek a civil monetary penalty, ensuring the entire $12.7 billion will be used to repay FTX creditors.

Meanwhile, FTXs proposed reorganization plan targets a 118% return for 98% of creditors with claims under $50,000, based on asset values from FTX’s bankruptcy filing in November 2022.

Many creditors, however, prefer a cryptocurrency payout, reflecting the markets growth since FTXs Chapter 11 filing. Creditors have until August 16 to vote on their preferred payout method, with U.S. Bankruptcy Court Judge John Dorsey making the final decision on October 7.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
DOT Soars Above $7 as Buyers Are Looking at This Target Next (Polkadot Price Analysis)
DOT Soars Above $7 as Buyers Are Looking at This Target Next (Polkadot Price Analysis)
May 6, 2024
Polkadot has been mired in a prolonged consolidation phase, hovering around the pivotal 200-day moving average and the $6.3 mark, reflecting uncertainty regarding its future trajectory. However, a breach below this crucial support area could culminate in a decline towards the $5.1 threshold. Technical Analysis By Shayan The Daily Chart A detailed examination of the daily chart unveils a period...
XRP Bulls Attempt a Recovery But is the Pain Over or Will $0.5 Fall? (Ripple Price Analysis)
XRP Bulls Attempt a Recovery But is the Pain Over or Will $0.5 Fall? (Ripple Price Analysis)
May 6, 2024
After breaking below the multi-month ascending trendline, XRP has exhibited uncertain price action, indicating a lack of market activity and momentum. However, the cryptocurrency has reached a critical resistance level, potentially signaling another downturn in the mid-term. Ripple Price Analysis: Technicals By Shayan The Daily Chart Upon thoroughly examining the daily chart, it becomes evident that XRP faced intensified selling...
Bitcoin Bull Market Resumed or is the Push to $65K a Trap? (BTC Price Analysis)
Bitcoin Bull Market Resumed or is the Push to $65K a Trap? (BTC Price Analysis)
May 6, 2024
After an extended period of sideways consolidation, Bitcoin witnessed a downtrend, breaking below the significant support zone of $59K. However, a notable bullish rebound near the 100-day MA suggests the potential for a resurgence in buying pressure. Technical Analysis By Shayan The Daily Chart Upon a comprehensive review of the daily chart, it becomes evident that Bitcoin underwent an extended...
XRP Price Predictions to Watch as Ripple v. SEC Trial Goes On
XRP Price Predictions to Watch as Ripple v. SEC Trial Goes On
May 6, 2024
TL;DR Analysts predict targets ranging from $1.88 to $2.50, with some presenting models forecasting XRPs next 300 days, suggesting significant price shifts. The ongoing Ripple v. SEC lawsuit holds potential to further impact the assets valuation, with expectations for a favorable outcome for the company. The Latest Forecasts The last several days have been quite positive for Ripples XRP, whose...
Copyright 2023-2025 - www.financetom.com All Rights Reserved