FTX exchange and trading firm Alameda Research to pay $12.7 billion to creditors
FTT
FTT
A New York judge has approved a consent order for FTX exchange and Alameda Research to pay $12.7 billion to creditors, ending a 20-month lawsuit from the Commodity Futures Trading Commission (CFTC).
The order does not include civil penalties but bans FTX and Alameda from trading digital assets and acting as intermediaries in the market. FTX filed for bankruptcy in late 2022, destroying billions of dollars in investor wealth.
The CFTC filed a lawsuit against FTX and Alameda, claiming fraud and misrepresentations. Sam Bankman-Fried, founder of both companies, was sentenced to 25 years in prison and ordered to forfeit $11 billion in March.
Last month, BitFlyer Holdings acquired FTX Japan, establishing it as a fully-owned subsidiary of the firm. The Tokyo-based exchange declared the acquisition on July 26, confirming all remaining shares. By August 26, 2024, BitFlyer plans to rename FTX Japan and introduce a new crypto custody firm.
