Cryptocurrency Exchange FTX and Sister Company Alameda Research Ordered to Pay $12.7 Billion to Creditors
FTX and Alameda Research, two prominent players in the cryptocurrency industry, have been directed to settle a significant debt of $12.7 billion to their creditors. This ruling comes after a prolonged legal battle with the Commodity Futures Trading Commission (CFTC) and marks a decisive conclusion to the case.
US Judge Approves Repayment Order for FTX
In a recent development, a US District Judge Peter Castel has endorsed the repayment order, bringing an end to the long-standing dispute. This decision follows FTX’s bankruptcy filing in 2022, making it a pivotal moment in the exchange’s tumultuous journey.
According to official records, the judge stated, “The acts, omissions, and failures of Bankman-Fried, Ellison, and other key individuals associated with FTX were conducted within the official capacity of their roles.” This emphasizes the accountability of the company’s leadership in the legal proceedings.
Restrictions Imposed on FTX and Alameda Research
As part of the court order, FTX and its affiliate, Alameda Research, are prohibited from engaging in digital asset trading or acting as market brokers. While no civil penalties were imposed, this injunction signals a significant shift in the operations of these entities.
Following the ruling, Alameda Research made a deposit of 205,380 $WLD valued at $351,000 into Binance on August 8th. With substantial assets amounting to over $630 million, including various cryptocurrencies like FTT, BIT, WLD, STG, and BOBA, the financial landscape of FTX and Alameda Research is under scrutiny.
In a separate legal proceeding, Sam Bankman-Fried, the founder of both FTX and Alameda Research, received a 25-year prison sentence and was ordered to surrender $11 billion. This further underscores the serious legal consequences faced by individuals involved in fraudulent activities within the cryptocurrency sector.
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