The FTX settlement has finally been approved, as reported by TurkishNY Radio. A New York judge has allowed the collapsed crypto exchange FTX and its sister company, Alameda Research, to repay $12.7 billion to their creditors.
Source: CourtListener
This marks the end of a long legal fight with the United States Commodity Futures Trading Commission (CFTC).
This important decision is a big deal for people all over the world who are involved in cryptocurrencies, especially for the creditors of FTX who have been waiting for their money.
The settlement not only wraps up the legal issues but also starts the process of paying back those affected by the failure of FTX, giving them a much-needed sense of relief.
This landmark ruling is pivotal for the global crypto community, particularly for FTX creditors who have been anxiously awaiting a resolution. The approved settlement not only concludes the legal battles but also initiates a methodical process for repaying those impacted by FTX’s downfall, offering them much-needed relief.
The FTX settlement was officially approved by United States District Judge Peter Castel on August 7. The settlement will see FTX and Alameda pay back $8.7 billion to investors who were defrauded by the company’s founder, Sam Bankman-Fried. Additionally, they will disgorge another $4 billion. Importantly, the CFTC did not seek any civil monetary penalty, meaning all the money will go directly to the creditors.
FTX and Alameda had initially agreed to this settlement on July 12, but it required final court approval, which has now been granted. This decision ensures that the entire $12.7 billion sum will be used to pay back the creditors directly.
FTX Settlement: Impact on Creditors
The FTX settlement will significantly impact the creditors. The order also bans FTX and Alameda Research from engaging in fraudulent activities or entering transactions involving digital asset commodities. They are permanently banned from buying or selling digital asset commodities on behalf of third parties.
The commodities regulator, named by FTX — now under the management of bankruptcy expert John Ray III — as the “most significant single creditor” in its ongoing bankruptcy case, filed a lawsuit against FTX, Sam Bankman-Fried, and Alameda Research in December 2022. The lawsuit claimed that the firm committed fraud and misrepresented itself as a “digital commodity asset platform.”
As per the current version of the FTX reorganization plan, creditors are expected to see a 118% return for 98% of their claims under $50,000. This is based on the US dollar value of asset prices at the time of FTX’s bankruptcy filing in November 2022. However, many creditors prefer to receive their payout in cryptocurrency, considering the crypto market’s 150% increase in total market cap since FTX filed for Chapter 11 protection.
FTX Settlement: Next Steps
FTX creditors are currently voting on their preferred payout method. They have until August 16 to submit their requests. Following this, US Bankruptcy Court Judge John Dorsey will make a final decision on October 7. The FTX settlement ensures that all $12.7 billion will be paid back to the creditors, marking a significant step forward in resolving the bankruptcy case.
This FTX settlement is a major development in the ongoing efforts to repay those who lost money due to the fraudulent activities of FTX and Alameda Research. The approval of this settlement by Judge Castel is a significant milestone in the legal proceedings.
TurkishNY Radio has been following this case closely and reports that the settlement agreement was reached after a 20-month-long lawsuit. This agreement will ensure that the creditors get their due payments without any deductions for civil monetary penalties.
In conclusion, the FTX settlement marks a significant victory for the creditors and the regulatory bodies involved. It ensures that a substantial amount of money is returned to those who were defrauded. This decision reflects the importance of accountability and justice in the financial sector.
The FTX settlement has been approved, ensuring $12.7 billion will be paid back to FTX creditors. This decision by Judge Castel highlights the need for transparency and fairness in financial dealings.
The TNYR team believes this settlement is a critical step in restoring trust in the cryptocurrency market. The FTX settlement is a reminder that regulatory bodies and the judicial system play a vital role in protecting investors and ensuring that justice is served.
TurkishNY Radio will continue to monitor the situation and provide updates on the final payout decisions and any further developments in this case.
