FTX, a bankrupt cryptocurrency exchange, and the Commodity Futures Trading Commission (CFTC) in the United States have agreed on a $12.7 billion settlement. This resolution comes after a 19-month lawsuit and is awaiting court approval following a filing on July 12.<\/p>\n
The settlement consists of $8.7 billion for restitution and $4 billion for disgorgement. Notably, the CFTC did not pursue a civil monetary penalty, ensuring that the entire $12.7 billion would go towards repaying FTX’s creditors.<\/p>\n
Carlin R. Metzger, senior trial attorney at the Commodity Futures Trading Commission, and FTX’s CEO John J. Ray III emphasized the significance of this agreement. They described it as a crucial part of FTX’s proposed Chapter 11 reorganization plan, resolving ongoing disputes with a major creditor, avoiding additional legal costs, delays, and safeguarding creditor assets.<\/p>\n
In December 2022, the CFTC filed a lawsuit against FTX, its former CEO Sam Bankman-Fried, and Alameda Research, FTX’s sister trading firm. The lawsuit alleged fraudulent activities and misrepresentations in promoting FTX.com as a digital commodity asset platform.<\/p>\n
FTX recognized the substantial liability resulting from its insiders’ actions and cooperated with the CFTC, the primary creditor in the Chapter 11 bankruptcy proceedings, to reach this settlement.<\/p>\n
A hearing on the settlement is set for August 6 at the Bankruptcy Court for the District of Delaware. FTX’s reorganization plan aims to offer a 118% return to 98% of creditors, particularly those with claims below $50,000, based on asset valuations at the time of FTX’s bankruptcy filing in November 2022.<\/p>\n
Many creditors prefer receiving payments in cryptocurrency, reflecting the market’s 166% growth since FTX’s bankruptcy filing. Creditors are currently voting on their preferred payment method, with voting concluding on August 16. A final decision by US Bankruptcy Court Judge John Dorsey is anticipated on October 7.<\/p>\n
This settlement is a significant stride towards concluding FTX’s bankruptcy proceedings and ensuring creditor reimbursement.<\/p>\n","protected":false},"excerpt":{"rendered":"
FTX, a bankrupt cryptocurrency exchange, and the Commodity Futures Trading Commission (CFTC) in the United States have agreed on a $12.7 billion settlement. This resolution comes after a 19-month lawsuit and is awaiting court approval following a filing on July 12. Summary of Settlement The settlement consists of $8.7 billion for restitution and $4 billion […]<\/p>\n","protected":false},"author":12,"featured_media":15775,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"slim_seo":{"title":"FTX and CFTC Reach $12.7 Billion Settlement Subject to Court Approval - Bitrabo","description":"FTX, a bankrupt cryptocurrency exchange, and the Commodity Futures Trading Commission (CFTC) in the United States have agreed on a $12.7 billion settlement. Thi"},"footnotes":""},"categories":[316],"tags":[1888,2252,1418,1046,6187,1183,720],"class_list":["post-15776","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","tag-bankruptcy","tag-business","tag-cftc","tag-court","tag-cryptoexchange","tag-ftx","tag-regulations"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/15776","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/comments?post=15776"}],"version-history":[{"count":0,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/15776\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media\/15775"}],"wp:attachment":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media?parent=15776"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/categories?post=15776"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/tags?post=15776"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}