FTX and Alameda Ordered to Pay $12.7B to Creditors
The post FTX and Alameda Ordered to Pay $12.7B to Creditors appeared on BitcoinEthereumNews.com.
FTX, the failed cryptocurrency exchange, and its sister company, Alameda Research, have been ordered to pay $12.7 billion to creditors. A New York judge issued a consent order on Wednesday, ending the Commodity Futures Trading Commission’s (CFTC) 20-month case. US Judge rules on FTX creditor repayment FTX was the first among many crypto exchanges to file for bankruptcy in 2022. Following the collapse, the United States CFTC lawsuit accused FTX and Alameda of fraud and misrepresentation of creditor funds. According to the filing, United States District Judge Peter Castel approved the payment order on August 7. However, the ruling did not seek any civil monetary penalties. The filing adds, “The acts, omissions, and failures of Bankman-Fried, Ellison, and other officers, employees or agents acting for the FTX Entity Defendants were done within the scope of their office, employment or agency.” The ruling adds, “Unless restrained and enjoined by this Court, there is a reasonable likelihood that the FTX Entity Defendants will continue to engage in the acts and practices alleged in the Amended Complaint and in similar acts and practices in violation of the Act and Regulations.” The order also forbids FTX and its sister company, Alameda, from trading digital assets or serving as market brokers but does not impose civil penalties. After the ruling was made, Alameda deposited 205,380 $WLD worth $351K into Binance on August 8th. FTX and Alameda currently hold $630M assets, including 266.85M $FTT worth $344.24M, 105.47M $BIT worth $113.26M, 24.8M $WLD worth $43.64M, 104M $STG worth $32.6M, and 145.97M $BOBA worth $29.83M. Sam Bankman-Fried, the founder of both companies, was sentenced to 25 years in jail and ordered to turn over $11 billion in March. He was previously convicted on seven counts of fraud, conspiracy, and money laundering. Also Read: MicroStrategy & BlackRock Bitcoin ETF Combined…
Filed under: News - @ August 9, 2024 10:14 am