Author: Brayden Lindrea, CoinTelegraph; Compiler: Tao Zhu, Golden Finance
Bankrupt cryptocurrency exchange FTX and the U.S. commodities regulator have agreed to a $12.7 billion settlement, resolving a 19-month-long lawsuit.
A recent document released on July 12 showed that the agreement was reached after months of back-and-forth negotiations and now only needs court approval.
"The proposed settlement is an integral and important part of the Debtor's proposed Chapter 11 reorganization plan," said Commodity Futures Trading Commission Senior Trial Attorney Carlin R. Metzger and FTX CEO John. J Ray III.
“It resolves ongoing litigation and disputes with one of the Debtor’s largest creditors, avoids the costs and delays of further litigation, and mitigates the significant risk of reduced assets available for distribution to creditors.”
In December 2022, the CFTC sued FTX, its former CEO Sam Bankman-Fried, and FTX’s sister trading firm Alameda Research, claiming that the company committed fraud and made false statements by marketing FTX.com as a digital commodity asset platform.
The settlement includes $8.7 billion in restitution and $4 billion in disgorgement.
The CFTC is not seeking civil monetary penalties, with FTX saying: “Given the conduct, guilty pleas and convictions of FTX insiders, the Debtors face very significant potential liability to the CFTC.”
FTX added that the commodities regulator is the “single most significant creditor” in the Chapter 11 bankruptcy case.
Excerpt from the settlement agreement reached between FTX and the CFTC. Source: Kroll
A hearing on the settlement is scheduled for August 6 in Delaware Bankruptcy Court.
Based on the USD value of FTX’s asset prices when it files for bankruptcy in November 2022, FTX’s proposed restructuring plan would yield a 118% return for 98% of creditors (those with claims of less than $50,000).
However, many FTX creditors have expressed a desire to be paid in cryptocurrency in kind, which would take into account the 166% increase in market value since FTX filed for bankruptcy.
Creditors are currently voting on how they want to be paid. They have until August 16 to vote, and U.S. Bankruptcy Court Judge John Dorsey will make a final decision on October 7.
BitFlyer plans to acquire FTX Japan for billions of yen, aiming to reposition it as a digital asset management firm for institutional investors. FTX's restructuring involves selling subsidiaries to repay creditors, with ongoing disputes over cash versus crypto repayments.
ZeZhengBinance Launchpool will launch the 50th project Ethena (ENA). What is the valuation of Ethena (ENA)?
JinseFinanceThe decentralized exchange holds over $390 million in locked tokens as of Tuesday.
CoindeskWe've seen play-to-earn and move-to-earn, now it's time for wear-to-earn — and these 10,000 NFTs can be redeemed for distinctive physical T-shirts.
Cointelegraphearn it
链向资讯Take an in-depth look at the "move-to-earn" hit STEPN, and explore whether its token economy will suffer a similar fate to previous pay-to-earn games.
链向资讯The number of Web3 to Earn projects on the market is increasing every day, and they are subtly embedded in life, involving every aspect of our lives.
FtftxThis article will talk about these innovations and how the Web3 to Earn project has more vitality.
FtftxWhat is the essence of X to Earn? Does everything really need to Earn?
链向资讯Does it look like the move-to-earn games are the next big thing in the gaming sector? Genopets and Dustland Runner, STEPN and others are making moves to make it happen.
Cointelegraph