United

Impact

FTX and its sister company, Alameda Research, have&nbsp;<a style="text-decoration:none" href="https://storage.courtlistener.com/recap/gov.uscourts.nysd.590934/gov.uscourts.nysd.590934.44.0.pdf" rel="noopener noreferrer nofollow">received</a> final approval from a New York judge to repay $12.7 billion to creditors. This approval follows a long-standing lawsuit filed by the United States Commodity Futures Trading Commission (CFTC) against the now-defunct crypto exchange.
The approval comes as part of a resolution to a 20-month lawsuit from the CFTC. The settlement agreement includes $8.7 billion in restitution and $4 billion in disgorgement. Notably, the CFTC did not seek a civil monetary penalty.
&nbsp;
The CFTC&nbsp;<a style="text-decoration:none" href="https://www.cftc.gov/PressRoom/PressReleases/8638-22" rel="noopener noreferrer nofollow">sued FTX</a>, its former CEO Sam Bankman-Fried, and Alameda Research in December 2022. The lawsuit accused the firm of fraud and misrepresentation by marketing FTX[dot]com as a digital commodity asset platform.&nbsp;
<h2 dir="ltr" id="span-span-statements-from-key-figures-span-span">Statements from Key Figures</h2>
Commodity Futures Trading Commission senior trial attorney Carlin R. Metzger and FTX’s CEO John J. Ray III have emphasized the importance of the settlement.&nbsp;
<blockquote>
 "The Proposed Settlement is an integral and valuable component of the Debtors’ proposed chapter 11 reorganization plan,” they stated.&nbsp;
</blockquote>
This settlement is seen as crucial for resolving ongoing litigation and disputes, avoiding further legal costs, and protecting the assets available for distribution to creditors.
<h2 dir="ltr" id="span-span-impact-on-creditors-span-span">Impact on Creditors</h2>
The proposed reorganization plan promises a 118% return for 98% of the creditors, particularly those with claims under $50,000. This return is based on the US dollar value of asset prices at the time of FTX’s bankruptcy filing in November 2022.&nbsp;
&nbsp;
However, many creditors have expressed a preference for cryptocurrency payouts, considering the market’s 166% increase in market cap since the bankruptcy filing.
&nbsp;
This settlement marks a major milestone in the resolution of one of the largest crypto lawsuits.

Judge Approves $12.7B Repayment Plan for FTX Creditors

Table of Contents

BSCN

Other articles published on Aug 15, 2024

Crypto influencers on notice after FTC bans fake likes and followers

US Policy Group Proposes Bitcoin Tax-Free Zone to Boost Digital Economy

Bitcoin Faces Significant Selling Pressure

Solana-Based Shiba Inu (SHIB) Rival Becomes Official Partner of Baseball United

Whales Drive Shiba Inu Price Down

Crypto Trading Platform ezBtc Allegedly Diverted $9.5M Customer Funds to Gambling Sites

Join our free newsletter for daily crypto updates!