FTX and Alameda Research to Repay $12.7 Billion to Creditors

user avatar

by Giorgi Kostiuk

2 years ago

Made with AI

  1. Court Approval
  2. Statements from Key Figures
  3. Impact on Creditors


    4. FTX and its sister company, Alameda Research, have received 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.

    Court Approval

    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.

    Statements from Key Figures

    The CFTC sued FTX, its former CEO Sam Bankman-Fried, and Alameda Research in December 2022. The lawsuit accused the firm of fraud and misrepresentation by marketing FTX.com as a digital commodity asset platform.

    The Proposed Settlement is an integral and valuable component of the Debtors’ proposed chapter 11 reorganization plan.Carlin R. Metzger, Senior Trial Attorney at CFTC, and John J. Ray III, CEO of FTX

    Impact on Creditors

    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. However, many creditors have expressed a preference for cryptocurrency payouts, considering the market’s 166% increase in market cap since the bankruptcy filing.

    This settlement marks a major milestone in the resolution of one of the largest crypto lawsuits.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Getty Images Stock Trading Suspended by NYSE

The New York Stock Exchange has suspended trading of Getty Images stock as of September 29, 2023, due to the company's ongoing financial issues and significant debt.

user avatarJacob Williams

Getty Images Faces Bankruptcy Risks Amid Rescue Financing Talks

Getty Images is in confidential discussions with lenders for a rescue financing deal, which may lead to bankruptcy and a lender takeover.

user avatarZainab Kamara

Tavus Launches Griffin, a Revolutionary AI for Human Interaction

Tavus introduces Griffin, an AI model that convincingly simulates human conversation during live video calls.

user avatarAyman Ben Youssef

Griffin Outshines Previous AI Models in Live Conversation Tests

Griffin outperforms its predecessor GriffinLite and other AI models in live conversation tests.

user avatarSon Min-ho

Dolphin Token Listed on Upbit with Three Trading Pairs

Dolphin (POD) has been officially listed on Upbit, one of South Korea's leading cryptocurrency exchanges, with three trading pairs: KRW, BTC, and USDT.

user avatarNguyen Van Long

Optimism Releases Opnode Update to Enhance Sequencer Performance

Optimism has launched a new opnode update aimed at improving the performance of sequencers and preventing configuration errors from causing upgrade issues.

user avatarTando Nkube

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.