FTX Settles $700M Lawsuit With K5 Global to Maximize Creditor Recoveries
The post FTX Settles $700M Lawsuit With K5 Global to Maximize Creditor Recoveries appeared on BitcoinEthereumNews.com.
Market News FTX and K5 Global settled a $700M lawsuit, ending asset clawback efforts. CEO John Ray calls K5 a “bright spot” in FTX’s recovery strategy. FTX has settled with K5 Global, resolving a lawsuit that sought to recover $700 million in disputed investments. The bankrupt crypto exchange had sued K5 in June 2023 as part of efforts to reclaim funds before its collapse in November 2022. The settlement will allow FTX to retain its stake in K5’s funds. CEO John J. Ray III called K5 a “bright spot” in the exchange’s portfolio. He expects its investments to support FTX’s recovery efforts and help compensate creditors. FTX’s Legal Battles K5 Global, co-founded by Michael Kives and Bryan Baum, had close ties to FTX’s founder, Sam Bankman-Fried. Kives, a former aide to Hillary Clinton’s chief of staff, leveraged business and celebrity connections. Bankman-Fried allegedly funneled misappropriated funds to K5 before FTX’s bankruptcy. In October 2023, a court-approved FTX’s plan to repay creditors. The exchange has since benefited from rising crypto prices and asset sales, including its stake in AI firm Anthropic. The settlement with K5 aligns with this broader recovery effort. FTX has also resolved cases with LayerZero and other entities. The LayerZero settlement followed an $86 million lawsuit over transactions with Alameda Research. The exchange also moved to recover $67 million from Anthony Scaramucci and $70 million from Sam Trabucco. Bankman-Fried, convicted of fraud, was sentenced to 25 years in prison in March 2024. His legal troubles continue, adding uncertainty to FTX’s efforts. FTX’s restructuring plan earmarked $6.5 billion for creditor repayments. It also finalized a deal with Backpack to sell FTX EU, ensuring creditor claims are settled in that region. Highlighted Crypto News TodayRobert Kiyosaki Warns of Bitcoin Crash Followed by Trump Tariffs Sindhu Budding crypto writer with a…
Filed under: News - @ February 1, 2025 12:19 pm