{"id":15270,"date":"2024-07-17T10:44:27","date_gmt":"2024-07-17T07:44:27","guid":{"rendered":"https:\/\/forklog.com\/en\/ftx-and-cftc-reach-12-7-billion-settlement-agreement\/"},"modified":"2024-07-17T10:44:27","modified_gmt":"2024-07-17T07:44:27","slug":"ftx-and-cftc-reach-12-7-billion-settlement-agreement","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/ftx-and-cftc-reach-12-7-billion-settlement-agreement\/","title":{"rendered":"FTX and CFTC Reach $12.7 Billion Settlement Agreement"},"content":{"rendered":"<p>The bankrupt cryptocurrency exchange FTX and the <span data-descr=\"U.S. Commodity Futures Trading Commission\" class=\"old_tooltip\">CFTC<\/span> have reached a $12.7 billion settlement following months of negotiations, as reported by <a href=\"https:\/\/www.theblock.co\/post\/305687\/ftx-and-cftc-agree-to-12-7-billion-settlement-following-months-of-negotiations\">The Block<\/a>.<\/p>\n<p>Back in 2022, the CFTC accused former FTX CEO Sam Bankman-Fried and the affiliated Alameda Research of actions that led to customer losses of $8 billion. Initially, the agency pursued a claim of $52.2 billion.<\/p>\n<p>However, under the agreement, the CFTC has waived its claims as long as FTX adheres to its reorganization plan. Consequently, the exchange will pay creditors up to $12.7 billion, contingent on available funds.<\/p>\n<p>The settlement includes $8.7 billion in restitution and $4 billion in penalties. The latter amount is deferred until all creditor claims are settled.<\/p>\n<p>Court documents describe the CFTC as the &#8220;most significant creditor&#8221; in the Chapter 11 bankruptcy proceedings.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cGiven the conduct, guilty pleas, and convictions of FTX employees, the debtors bear a very substantial potential liability to the CFTC,\u201d the statement reads.<\/p>\n<\/blockquote>\n<p>A hearing on the settlement motion is scheduled for August 6.<\/p>\n<p>FTX filed for bankruptcy at the end of 2022.<\/p>\n<p>In May 2024, the exchange proposed a <a href=\"https:\/\/u1f987.com\/en\/news\/ftx-proposes-118-return-to-creditors\">new compensation plan<\/a>, under which 98% of creditors would receive at least 118% of their claims. The company forecasts total compensation to range from $14.5 billion to $16.3 billion.<\/p>\n<p>Representatives of the largest group of creditors <a href=\"https:\/\/u1f987.com\/en\/news\/ftx-creditors-criticise-new-compensation-plan\">opposed the exchange&#8217;s proposal<\/a>. They argue that the plan limits recipients&#8217; options and absolves some defendants of liability. A vote on the plan is set to occur by August 16.<\/p>\n<p>Previously, FTX settled a $24 billion claim with the U.S. Internal Revenue Service.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The bankrupt cryptocurrency exchange FTX and the CFTC have reached a $12.7 billion settlement following months of negotiations, as reported by The Block. Back in 2022, the CFTC accused former FTX CEO Sam Bankman-Fried and the affiliated Alameda Research of actions that led to customer losses of $8 billion. Initially, the agency pursued a claim [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":15269,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1300,1166,879,1162,1236],"class_list":["post-15270","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bankruptcy","tag-centralized-exchanges-cex","tag-cftc","tag-court-cases","tag-ftx"],"aioseo_notices":[],"amp_enabled":true,"views":"21","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/15270","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=15270"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/15270\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/15269"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=15270"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=15270"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=15270"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}