{"id":26196,"date":"2024-08-08T10:30:03","date_gmt":"2024-08-08T07:30:03","guid":{"rendered":"https:\/\/coinengineer.net\/blog\/?p=26196"},"modified":"2024-08-08T09:21:16","modified_gmt":"2024-08-08T06:21:16","slug":"ftx-and-alameda-research-to-pay-back-12-7-billion-to-creditors","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/ftx-and-alameda-research-to-pay-back-12-7-billion-to-creditors\/","title":{"rendered":"FTX and Alameda Research to Pay Back $12.7 Billion to Creditors"},"content":{"rendered":"<p>As part of a settlement with <strong>the United States Commodity Futures Trading Commission (CFTC)<\/strong>, a New York court has granted final clearance for collapsed cryptocurrency exchange <strong>FTX<\/strong> and its sibling trading company <strong>Alameda Research<\/strong> to refund $12.7 billion to FTX creditors.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_71 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/coinengineer.net\/blog\/ftx-and-alameda-research-to-pay-back-12-7-billion-to-creditors\/#Court_Approval_for_Settlement\" title=\"Court Approval for Settlement\">Court Approval for Settlement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/coinengineer.net\/blog\/ftx-and-alameda-research-to-pay-back-12-7-billion-to-creditors\/#Settlement_Details\" title=\"Settlement Details\">Settlement Details<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/coinengineer.net\/blog\/ftx-and-alameda-research-to-pay-back-12-7-billion-to-creditors\/#Future_Steps_for_Creditor_Payouts\" title=\"Future Steps for Creditor Payouts\">Future Steps for Creditor Payouts<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Court_Approval_for_Settlement\"><\/span>Court Approval for Settlement<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>United States District Judge <strong>Peter Caste<\/strong>l formally authorized the $12.7 billion consent order, which <strong>FTX and Alamed<\/strong>a signed into to settle a 20-month-long CFTC case in an Aug. 7 filing. First agreeing to the settlement on July 12, FTX and Alameda needed final court clearance, which was given on August 7.<\/p>\n<p><strong>The CFTC<\/strong> notably did not pursue a civil monetary penalty, so the whole $12.7 billion would be utilized to back-off FTX creditors.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Settlement_Details\"><\/span>Settlement Details<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Alameda and FTX<\/strong> agreed to reimburse investors misled by founder Sam Bankman-Fried $8.7 billion as well as to wipe another $4 billion. The ruling further permanently forbids FTX and Alameda Research from ever purchasing or selling digital asset commodities on behalf of third parties, from deceiving commodity clients, from engaging in transactions involving digital asset commodities.<\/p>\n<p>Taken over by bankruptcy specialist John Ray III, FTX identified the commodities regulator as the &#8220;most significant single creditor&#8221; in its continuous bankruptcy case. Claiming the company committed fraud and misled <strong>Alameda Research<\/strong>, its former CEO Sam Bankman-Fried, and FTX by presenting itself as a &#8220;digital commodity asset platform,&#8221; the CFTC sued both companies in December 2022<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Future_Steps_for_Creditor_Payouts\"><\/span>Future Steps for Creditor Payouts<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Based on US dollar value of asset values at the time of FTX&#8217;s bankruptcy declaration in November 2022, the most recent version of the suggested <strong>FTX<\/strong> reorganizing plan would see a 118% return for 98% of its creditors\u2014those with claims under $50,000.<\/p>\n<p>But many <strong>FTX<\/strong> creditors have indicated that they would rather have a bitcoin dividend in-kind, which would consider the nearly 150% rise in overall market capitalization since <strong>FTX<\/strong> entered Chapter 11 protection. Right now, creditors are casting votes on their preferred payment method. They have until Aug. 16 to submit their claims; US Bankruptcy Court Judge John Dorsey will provide an official ruling on Oct. 7.<\/p>\n<p><i><span style=\"font-weight: 400;\">You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don\u2019t forget to follow us on our <\/span><\/i><a href=\"https:\/\/t.me\/coinengineernews\"><i><span style=\"font-weight: 400;\">Telegram, <\/span><\/i><\/a><a href=\"https:\/\/www.youtube.com\/@CoinEngineer\"><i><span style=\"font-weight: 400;\">YouTube<\/span><\/i><\/a><i><span style=\"font-weight: 400;\">, and <\/span><\/i><a href=\"https:\/\/twitter.com\/coinengineers\"><i><span style=\"font-weight: 400;\">Twitter<\/span><\/i><\/a><i><span style=\"font-weight: 400;\"> channels for the latest <\/span><\/i><a href=\"https:\/\/coinengineer.io\/news\/\"><i><span style=\"font-weight: 400;\">news<\/span><\/i><\/a><i><span style=\"font-weight: 400;\"> and updates.<\/span><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As part of a settlement with the United States Commodity Futures Trading Commission (CFTC), a New York court has granted final clearance for collapsed cryptocurrency exchange FTX and its sibling trading company Alameda Research to refund $12.7 billion to FTX creditors. Court Approval for Settlement United States District Judge Peter Castel formally authorized the $12.7<\/p>\n","protected":false},"author":6,"featured_media":5266,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,657,1],"tags":[1857,496,7740],"class_list":["post-26196","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","category-en","category-genel","tag-alameda-research","tag-ftx","tag-united-states-commodity-futures-trading-commission-cftc"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>FTX and Alameda Research to Pay Back $12.7 Billion to Creditors - Coin Engineer<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/coinengineer.net\/blog\/ftx-and-alameda-research-to-pay-back-12-7-billion-to-creditors\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"FTX and Alameda Research to Pay Back $12.7 Billion to Creditors - Coin Engineer\" \/>\n<meta property=\"og:description\" content=\"As part of a settlement with the United States Commodity Futures Trading Commission (CFTC), a New York court has granted final clearance for collapsed cryptocurrency exchange FTX and its sibling trading company Alameda Research to refund $12.7 billion to FTX creditors. 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