Creditors due $12.7B from FTX and Alameda 21 months after bankruptcy
A judge has ordered both FTX and its sister trading firm Alameda Research to pay out $12.7 billion to creditors following the conclusion of a Commodity Futures Trading Commission (CFTC) lawsuit.
In an August 7 filing, New York district judge Peter Castel ruled that both collapsed crypto firms should pay a disgorgement of $8.7 billion to the victims who lost out, and $4 billion to cover the profits they made during all of their violations.
Defendants, including FTX, Alameda, Caroline Ellison, Sam Bankman-Fried, Gary Wang, and any of their affiliates, are, according to yesterday’s consent order, also prohibited from trading any digital asset commodities, including, bitcoin, ether, and tether. They are also banned from acting as market intermediaries.
Read more: FTX-claims broker embezzled millions to spend on jewelry, art, and luxury hotels
FTX and Alameda had both agreed with the CFTC back in July to pay the billion-dollar settlement. However, this agreement was subject to yesterday’s court verdict.
It marks the end of a 20-month-long lawsuit from the CFTC that was filed in December 2022.
FTX collapsed and declared bankruptcy in November of that year after it was discovered to have misappropriated billions of dollars of funds. Its former CEO, Bankman-Fried, was sentenced to 25 years in prison this year for charges including wire fraud, conspiracy to commit fraud, and money laundering conspiracy.
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