U.S. District Judge P. Kevin Castel of the Southern District of New York on Wednesday formally approved the settlement agreement between FTX, Alameda Research and the U.S. Commodity Futures Trading Commission (CFTC), which means that FTX creditors will receive $12.7 billion in compensation in this long-running case. A 20-month fraud lawsuit also comes to an end.
According to the settlement agreement, FTX and Alameda Research agreed to pay US$8.7 billion to investors who suffered losses and an additional US$4 billion in damages, for a total compensation of US$12.7 billion.
In addition, the order will permanently prohibit FTX and Alameda Research from defrauding customers, participating in digital asset transactions, and prohibiting both companies from buying and selling digital assets on the behalf of third parties.
The CFTC is not seeking a civil penalty, meaning all of the $12.7 billion will be used to repay creditors.
Creditors are currently voting on how to accept compensation, with voting due on August 16 and U.S. Bankruptcy Court Judge John Dorsey expected to make a final decision on October 7.
FTX compensation is imminent: you must choose the claim process before mid-August, and you can get a one-time repayment if your claim is less than $50,000
〈Settlement agreement with the U.S. CFTC approved! FTX, Alameda must pay creditors US$12.7 billion> This article was first published on "Blocker".
