FTX Settles CFTC Lawsuit, Agrees to $12.7 Billion Payout
- FTX and Alameda Research receive approval to repay $12.7 billion to creditors.
- The CFTC waived civil monetary penalties to maximize creditor repayment.
- FTX and Alameda are permanently banned from trading digital asset commodities.
A pivotal development in the ongoing FTX bankruptcy saga emerged as New York Judge P. Kevin Castel approved a consent order requiring the defunct crypto exchange and its sister company, Alameda Research, to pay $12.7 billion in restitution to defrauded investors. This ruling concludes a 20-month CFTC lawsuit triggered by FTX’s collapse during the 2022 crypto winter.
The Commodity Futures Trading Commission (CFTC) had initiated legal action against FTX and Alameda, alleging fraud and misrepresentation. Both parties reached a settlement agreement on July 12, which received final court approval on August 7. The CFTC opted to waive a civil monetary penalty, ensuring the entire $12.7 billion will be directed towards repaying FTX creditors.
The settlement mandated that FTX and Alameda repay $8.7 billion in restitution, with an additional $4 billion in disgorgement. The order also permanently barred both entities from trading digital as…
The post FTX Settles CFTC Lawsuit, Agrees to $12.7 Billion Payout appeared first on Coin Edition.
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FTX Settles CFTC Lawsuit, Agrees to $12.7 Billion Payout
- FTX and Alameda Research receive approval to repay $12.7 billion to creditors.
- The CFTC waived civil monetary penalties to maximize creditor repayment.
- FTX and Alameda are permanently banned from trading digital asset commodities.
A pivotal development in the ongoing FTX bankruptcy saga emerged as New York Judge P. Kevin Castel approved a consent order requiring the defunct crypto exchange and its sister company, Alameda Research, to pay $12.7 billion in restitution to defrauded investors. This ruling concludes a 20-month CFTC lawsuit triggered by FTX’s collapse during the 2022 crypto winter.
The Commodity Futures Trading Commission (CFTC) had initiated legal action against FTX and Alameda, alleging fraud and misrepresentation. Both parties reached a settlement agreement on July 12, which received final court approval on August 7. The CFTC opted to waive a civil monetary penalty, ensuring the entire $12.7 billion will be directed towards repaying FTX creditors.
The settlement mandated that FTX and Alameda repay $8.7 billion in restitution, with an additional $4 billion in disgorgement. The order also permanently barred both entities from trading digital as…
The post FTX Settles CFTC Lawsuit, Agrees to $12.7 Billion Payout appeared first on Coin Edition.
Read More