FTT Token

Token

2024

Impact

<p>The post <a href="https://coinpedia.org/news/ftx-reaches-settlement-with-cftc-are-crypto-holders-finally-getting-their-money-back/">FTX Reaches Settlement with CFTC: Are Crypto Holders Finally Getting Their Money Back?</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>FTX, the notorious cryptocurrency exchange that collapsed in 2022, has announced a settlement with the Commodity Futures Trading Commission (CFTC) as part of its ongoing bankruptcy proceedings. Meanwhile, the agreement, which awaits court approval, could reshape the landscape for affected cryptocurrency holders and mark a critical step in the ongoing bankruptcy process.&nbsp;</p> 
<p>Perhaps the details reveal a complex arrangement that prioritizes creditors while introducing a new compensation mechanism for those impacted.</p> 
<h2 class="wp-block-heading" id="h-key-details-of-settlement">Key Details Of Settlement</h2> 
<p>The settlement addresses a massive $4 billion claim from the CFTC, which will now be treated as a lower priority compared to other creditor claims. This means that while the <a href="https://coinpedia.org/news/cftc-chair-warns-of-potential-for-another-crypto-market-crash/" target="_blank" rel="noreferrer noopener">CFTC’s claim remains valid</a>, any funds that would have gone to the CFTC will instead be redirected to a new Supplemental Remission Fund.&nbsp;</p> 
<p>This fund is designed to provide <a href="https://coinpedia.org/news/ftx-bankruptcy-drama-creditors-object-to-cash-payouts-demand-in-kind-reimbursements/" target="_blank" rel="noreferrer noopener">additional compensation</a> to those who suffered losses due to FTX’s collapse, but it will only become active after all creditors are paid in full.</p> 
<p>Judge Kaplan’s recent ruling laid the groundwork for this settlement by imposing substantial financial penalties on FTX. Notably, the court’s order included a $4 billion disgorgement and $8.7 billion in restitution, highlighting the seriousness of the alleged misconduct.</p> 
<h2 class="wp-block-heading" id="h-acknowledging-victims-losses">Acknowledging Victims’ Losses</h2> 
<p>The settlement reflects an acknowledgment of the severe impact on creditors, particularly those who invested in cryptocurrencies. Over 200 victim statements submitted to Judge Kaplan have underscored the urgency of addressing these losses.&nbsp;</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">Well done to FTX victims (200+) sent in Victim Impact Statements to Judge Kaplan<br><br>You made a difference despite media reporting FTX customers are 100% whole under the plan<br><br>Judge Kaplan, CFTC, Govt. recognised Crypto holders are not whole at petition date prices<br><br>My conclusion… <a href="https://t.co/Ew7IIwFG5c">pic.twitter.com/Ew7IIwFG5c</a></p>— Sunil (FTX Creditor Champion) (@sunil_trades) <a href="https://twitter.com/sunil_trades/status/1812014738143949008?ref_src=twsrc%5Etfw">July 13, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
<p>However, this settlement has stirred controversy among some creditors who feel that using victim assets to pay government fines is unjust. They argue that victims should be compensated at current market prices before any payments to regulatory agencies.</p> 
<h2 class="wp-block-heading" id="h-challenges-for-ftt-token-holders">Challenges for FTT Token Holders</h2> 
<p>In addition to the CFTC settlement, the FTX restructuring plan has faced hurdles, especially for <a href="https://coinpedia.org/price-analysis/ftx-token-to-retest-3-this-week-as-ftt-price-jumps-38-today/" target="_blank" rel="noreferrer noopener">holders of the FTT token</a>. The official committee of unsecured creditors revealed that those filing claims based solely on FTT holdings will automatically be considered as rejecting the restructuring plan and will not receive voting rights.&nbsp;</p> 
<p>However, these claimants still have the option to participate in plan releases. Customers with claims involving fiat or other cryptocurrencies will receive ballots to vote on the restructuring plan.</p> 
<p>Also Read: <a href="https://coinpedia.org/news/us-election-2024-elon-musks-sizeable-donation-to-america-pac-for-donald-trump/" target="_blank" rel="noreferrer noopener">US Election 2024: Elon Musk Makes SHOCKING $15.8M Donation to Trump’s PAC</a></p>

FTX Reaches Settlement with CFTC: Are Crypto Holders Finally Getting Their Money Back?

Table of Contents

CoinPedia News

Other articles published on Jul 13, 2024

Nigeria should classify BTC and Ether as commodities – but it won’t

Bitcoin Price Eyes $70k Rally as Long-Term Holders Accumulate at Record Pace

Analysts Unanimous: Solana (SOL) To Soar 100% – Details

Is XRP’s Recent 20% Surge a Sign of a Bull Rally?

Whales like MATIC, but is that enough for the altcoin’s price?

Binance tax evasion verdict set for October

Join our free newsletter for daily crypto updates!