Bankrupt cryptocurrency exchange FTX and the U.S. Commodity Futures Trading Commission (CFTC) have agreed to a $12.7 billion settlement, pending approval from a judge in Delaware.
The two sides have been negotiating for the past several months, according to a court document filed July 12 in the U.S. Bankruptcy Court for the District of Delaware.
According to the filing, the Settlement Agreement is an integral and valuable component of the debtors' chapter 11 reorganization plan. It resolves ongoing disputes and litigation with one of the debtors' largest creditors, avoiding the cost and delay of further litigation and significantly minimizing the risk of impairment. assets available for distribution to creditors.
The CFTC issued a complaint in 2022 against the exchange, former FTX CEO Sam Bankman-Fried and the related Alameda investment fund for fraud and said their actions cost customers $8 billion. The agency initially requested a settlement of $52.2 billion, according to the proposed agreement.
As part of the settlement, the CFTC agreed not to receive any payments as long as FTX complies with its reorganization plan. As a result, FTX will pay up to $12.7 billion to creditors, depending on available funds.
“In this special settlement, the CFTC waives its own recovery against FTX in addition to recoveries by customers and crypto lenders that exceed typical levels in chapter 11 cases. ,” Andy Dietderich, partner at Sullivan & Cromwell and lead counsel for debtors FTX, said in an email statement.
The settlement is divided into $8.7 billion in damages and $4 billion in forfeitures. The $4 billion forfeiture amount will “take priority after payment of the claims of all creditors,” according to the filing.
FTX said in court filings that CFTC is “the most significant single creditor” in chapter 11 bankruptcies.
“Given FTX's conduct, guilty pleas, and convictions, [FTX] debtors face potentially significant liability to the CFTC,” they said in the filing.
A hearing on the proposed settlement will take place on August 6.
FTX filed for bankruptcy at the end of 2022. Debtors revealed their reorganization plan in May and said they intended to pay at least 118% of accepted claims to 98% of creditors mine. Under the plan, creditors whose claims are accepted for less than $50,000 will be eligible to receive 118% compensation upon court approval.
Some, including those representing FTX's largest group of creditors, have objected to the plan and argued that assets should be paid for in cryptocurrency rather than their dollar value when the exchange files for bankruptcy. . Votes on the plan expire on August 16. Cryptocurrency prices have increased significantly since that date, for example Solana (SOL) increased by up to 10 times.
Bankman-Fried was convicted in November 2023 on seven criminal counts, including two counts of chain fraud and conspiracy to commit chain fraud, and sentenced to nearly 25 years in prison. The U.S. Securities and Exchange Commission also charged Bankman-Fried with fraud.
FTT 7-day price chart | Source: Coingecko
Immediately after the above information, the FTT token price of FTX exchange increased 16%, currently trading at $1.61, an increase of more than 35% in 7 days.
Source: https://tapchibitcoin.io/ftx-va-cftc-dong-y-voi-thoa-thuan-tri-gia-127-ty-usd.html
