FTX Settles CFTC Lawsuit with $12.7 Billion Payout
30X Profit Expected from AIG Token: AI Games has launched its native token (AIG). 1 AIG Token Price Is $0.01 & Exchange Listing Price $0.30, Don’t miss this opportunity; join the pre-sale at the official website [PlayAiGames.Online]
FTX and Alameda Research have been approved to repay $12.7 billion to creditors. The Commodity Futures Trading Commission (CFTC) waived civil monetary penalties to ensure the full repayment amount. Additionally, both FTX and Alameda are permanently banned from trading digital asset commodities.
In a major update to the FTX bankruptcy case, New York Judge P. Kevin Castel has approved a consent order that requires FTX and its sister company, Alameda Research, to pay $12.7 billion to defrauded investors. This decision wraps up a 20-month lawsuit by the Commodity Futures Trading Commission (CFTC) that was sparked by FTX’s collapse during the 2022 crypto winter.
The Commodity Futures Trading Commission (CFTC) took legal action against FTX and Alameda Research, accusing them of fraud and misrepresentation.
On July 12, both companies reached a settlement agreement, which was officially approved by the court on August 7. The CFTC chose to forgo civil monetary penalties, directing the entire $12.7 billion settlement towards repaying FTX’s creditors.
Under the settlement, FTX and Alameda are required to pay $8.7 billion in restitution and an additional $4 billion in disgorgement.
The court order also imposes a permanent ban on both companies from trading digital asset commodities and acting as intermediaries in such transactions. They are further prohibited from engaging in any unauthorized financial activities.
The settlement funds will be distributed through the ongoing FTX bankruptcy proceedings. This process will be overseen by either the FTX CEO or a court-approved plan administrator, with regular reports on the disbursement provided to the CFTC to ensure compliance with the court’s directives.
