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4 months ago
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ARTICLE AD BOX
- Final court permission was given out by District Judge Castel on August 7.
- The commodities regulator refrained from pursuing a civil monetary penalty.
Final clearance for the $12.7 billion repayment to FTX creditors as part of the settlement with the US Commodity Futures Trading Commission (CFTC) was given by a New York court for the now-defunct crypto exchange FTX and its sister trading business Alameda Research.
Judgment on the $12.7 billion settlement agreement between FTX and Alameda, which ended a 20-month-long case brought by the CFTC, was formally granted by United States District Judge Peter Castel in a filing on August 7.
No Civil Monetary Penalty
Moreover, final court permission was given out by District Judge Castel on August 7. Although the lawsuit could not proceed until FTX and Alameda first consented to the settlement on July 12. The commodities regulator refrained from pursuing a civil monetary penalty. So the whole $12.7 billion will go toward paying out FTX’s creditors.
After founder Sam Bankman-Fried bilked $8.7 billion from investors, FTX and Alameda both committed to repaying the money. A further $4 billion was also directed that they disgorge.
The ruling further prohibits FTX and Alameda Research from engaging in any dealings involving digital asset commodities. Also, from “cheating or defrauding” clients, and from ever purchasing or selling such commodities on behalf of other parties.
Furthermore, after being taken over by bankruptcy specialist John Ray III, FTX designated the commodities regulator as the “most significant single creditor” in its current bankruptcy case.
In December 2022, the CFTC filed a lawsuit against Alameda Research, FTX, and its former CEO Sam Bankman-Fried. Alleging that the company had engaged in fraudulent practices and misled investors by advertising itself as a platform for digital commodities assets.
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