Wednesday

<h4><strong>This <a href="https://storage.courtlistener.com/recap/gov.uscourts.nysd.590934/gov.uscourts.nysd.590934.44.0.pdf" target="_blank" rel="noopener">decision</a> marks the conclusion of a protracted 20-month lawsuit initiated by the Commodity Futures Trading Commission (CFTC). </strong></h4> 
<p>The order was finalized on Wednesday and represents a critical milestone in the ongoing fallout from the collapse of FTX.</p> 
<h5><strong>Judge Bans FTX and Alameda from Crypto Trading</strong></h5> 
<p>The order, however, does not include any civil penalties against FTX or <a href="https://www.altcoinbuzz.io/?s=alameda" target="_blank" rel="noopener">Alameda</a>. Instead, it focuses on the financial restitution owed to creditors affected by the collapse. Importantly, both FTX and Alameda are now banned from trading digital assets and serving as intermediaries in the market. This prohibition aims to prevent any further disruption or potential misconduct in the crypto space.</p> 
<p>FTX filed for bankruptcy in late 2022, leading to the loss of billions of dollars in investor wealth. The bankruptcy has caused widespread financial losses for many investors and creditors. The CFTC alleged that FTX and Alameda engaged in fraud and misrepresented FTX’s capabilities.</p> 
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<h6 style="text-align: center;"><strong>Source: <a href="https://x.com/kyle_chasse/status/1821429125258658109?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1821429125258658109%7Ctwgr%5E5cf3123d63096bc90e8a8baa45c10c3d5fa0777a%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fwww.coindesk.com%2Fpolicy%2F2024%2F08%2F08%2Fftx-alameda-ordered-to-pay-127b-to-creditors-by-us-judge%2F" target="_blank" rel="noopener">X</a></strong></h6> 
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   The consent order, now approved by the court, concludes a lengthy legal battle and establishes a clear financial obligation for FTX and Alameda to their creditors. The case has been a significant focal point in the regulatory scrutiny of the cryptocurrency industry, highlighting the need for greater oversight and transparency.
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<h5><strong>More About FTX and Alameda</strong></h5> 
<p>The financial repercussions of the order underscore the severe impact of FTX’s collapse on the broader market. The $12.7 billion payment is intended to address the claims of affected creditors, although the exact distribution of these funds will be closely watched by both industry observers and impacted parties.</p> 
<p>As FTX and Alameda are barred from future digital asset trading and intermediary roles, the crypto industry will likely continue to reflect on the implications of this case. The ruling serves as a cautionary tale about the risks of investing in and trading cryptocurrencies without adequate regulatory safeguards.</p> 
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<h6><strong>Disclaimer</strong></h6> 
<p>The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.</p> 
<p>The post <a href="https://www.altcoinbuzz.io/cryptocurrency-news/ftx-and-alameda-ordered-to-pay-12-7b-to-creditors/">FTX and Alameda Ordered to Pay $12.7B to Creditors</a> appeared first on <a href="https://www.altcoinbuzz.io">Altcoin Buzz</a>.</p>

FTX and Alameda Ordered to Pay $12.7B to Creditors

Altcoin Buzz

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