{"id":15926,"date":"2024-08-08T11:59:45","date_gmt":"2024-08-08T08:59:45","guid":{"rendered":"https:\/\/forklog.com\/en\/court-approves-12-7-billion-settlement-between-ftx-and-cftc\/"},"modified":"2024-08-08T11:59:45","modified_gmt":"2024-08-08T08:59:45","slug":"court-approves-12-7-billion-settlement-between-ftx-and-cftc","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/court-approves-12-7-billion-settlement-between-ftx-and-cftc\/","title":{"rendered":"Court Approves $12.7 Billion Settlement Between FTX and CFTC"},"content":{"rendered":"<p>U.S. District Judge Peter Castel <a href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.nysd.590934\/gov.uscourts.nysd.590934.44.0.pdf\">approved<\/a> a settlement agreement between the <span data-descr=\"U.S. Commodity Futures Trading Commission\" class=\"old_tooltip\">CFTC<\/span>, FTX, and Alameda Research, under which the exchange and its subsidiary will pay creditors $12.7 billion.<\/p>\n<p>The parties reached an agreement to settle the 20-month-long dispute on July 12. However, the decision awaited final approval, which Judge Castel granted on August 7.<\/p>\n<p>The regulator did not pursue civil penalties; the entire sum will go towards settling FTX&#8217;s creditor claims. The defendants agreed to pay $8.7 billion to defrauded investors as restitution and an additional $4 billion as disgorgement of ill-gotten gains.<\/p>\n<p>The court order permanently barred FTX and Alameda from &#8220;deceiving or misleading&#8221; clients, engaging in transactions involving &#8220;digital assets,&#8221; and buying or selling them on behalf of third parties.<\/p>\n<p>The CFTC sued FTX&#8217;s former CEO Sam Bankman-Fried and Alameda in December 2022, accusing them of fraud and providing false information. The initial claim amounted to $52.2 billion.<\/p>\n<p>Since November 2022, the companies have been undergoing bankruptcy proceedings. The reorganization plan proposed in May 2024 aims to reimburse at least 118% of claims for 98% of FTX&#8217;s creditors.<\/p>\n<p>Representatives of the largest group of investors <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 the recipients&#8217; options and absolves some defendants of liability. Voting on the plan will continue until August 16.<\/p>\n<p>In June, FTX settled a lawsuit with the U.S. Internal Revenue Service for $24 billion.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>U.S. District Judge Peter Castel approved a settlement agreement between the CFTC, FTX, and Alameda Research, under which the exchange and its subsidiary will pay creditors $12.7 billion. The parties reached an agreement to settle the 20-month-long dispute on July 12. However, the decision awaited final approval, which Judge Castel granted on August 7. The [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"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-15926","post","type-post","status-publish","format-standard","hentry","category-news-and-analysis","tag-bankruptcy","tag-centralized-exchanges-cex","tag-cftc","tag-court-cases","tag-ftx"],"aioseo_notices":[],"amp_enabled":true,"views":"14","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/15926","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=15926"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/15926\/revisions"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=15926"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=15926"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=15926"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}