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 19, 2024

BlockDAG’s 8% Extra Bonus Taking the Spotlight from Ethereum & Kaspa Updates

Ripple CEO Discusses How XRP Could Dominate SWIFT

What Gaming Projects Are on Our Radar?

Binance Expands Syscoin Futures Trading

BNB Chain Launches Gas Grants Program Worth Over $1M to Boost Dapp Success

Bitwise Acquires ETC Group to Expand into Europe

Join our free newsletter for daily crypto updates!