FTX, the cryptocurrency exchange currently undergoing bankruptcy, has reached a new milestone agreement, resolving its legal dispute with venture firm K5 Global, thus ending an almost year-long legal battle.
FTX's Lawsuit with K5 Global
In June 2024, FTX filed a lawsuit against K5 Global, with significant allegations against Michael Kives, co-founder of K5, accused of using his political influence to aid in misappropriating client funds. The agreement between the parties ends this lengthy dispute, although the terms remain undisclosed. It is unclear if any funds have been recovered from the venture firm.
Other Legal Battles of FTX
FTX also recently reached an agreement with the LayerZero protocol to settle a case seeking the recovery of $86 million in a share-sell deal with Alameda Research. As part of the settlement, the protocol waived an $11.5 million share deal.
FTX's Repayment and Reorganization Process
The exchange has recently been working to recover $67 million from Anthony Scaramucci and reached an agreement to recover at least $70 million from former Alameda Research executive Sam Trabucco. FTX has also begun its claims repayment process, allocating $6.5 billion for creditors in the initial stage.
FTX's latest settlements demonstrate its ongoing efforts to recover funds for creditors, a key part of its bankruptcy proceedings.
