FTX and Alameda Ordered by Court to Pay $12.7 Billion
The post FTX and Alameda Ordered by Court to Pay $12.7 Billion appeared on BitcoinEthereumNews.com.
A New York judge has approved a $12.7 billion settlement for FTX and Alameda Research creditors, ending a 20-month lawsuit with the CFTC. FTX’s proposed reorganization plan includes a 118% return for 98% of creditors with claims under $50,000. As per the latest development, the New Tork Judge ruled that defunct crypto exchange FTX and its trading firm Alameda Research will pay a staggering $12.7 billion to creditors, thereby putting an end to the 20-month-long lawsuits with the U.S. Commodities and Futures Trading Commission (CFTC). According to the filing, US District Judge Peter Castel approved the same on Wednesday, August 7. Although the order doesn’t include civil penalties, it bans FTX and Alameda Research from trading cryptocurrencies and acting as intermediaries in the market. BREAKING: FTX & ALAMEDA FINAL APPROVAL HANDED DOWN, ORDERED TO PAY BACK $12.7 BILLION TO FTX CREDITORS pic.twitter.com/kf3QlJVIuB — Kyle Chassé (@kyle_chasse) August 8, 2024 In late 2022, crypto exchange FTX filed for bankruptcy, leading to billions of dollars in investors’ losses, as reported by CNF. Later, the commodities regulator CFTC filed a lawsuit against FTX and its sister concern, Alameda Research, alleging that both these players committed fraud by publicizing FTX as a digital commodity asset platform. The CFTC was originally seeking a settlement claim of $52 billion. However, the final settlement was $12.7 billion on Wednesday. The final settlement value of $12.7 includes $8.7 billion in restitution for those who suffered massive losses along with $4 billion in disgorgement for the gains derived through the violations. FTX’s Reorganization Plans The proposed reorganization from FTX includes providing a 118% return for a massive 98% of creditors having claims of under $50,000, based on asset valuations from FTX’s November 2022 bankruptcy filing. However, many creditors have demanded a cryptocurrency payout, considering the rapid market growth since FTX’s Chapter 11 filing.…
Filed under: News - @ August 9, 2024 4:26 am