In recent developments, bankrupt cryptocurrency exchange FTX has agreed to a settlement involving some claims related to their acquisition of the stock trading platform Embed.
What Happened: The settlement includes FTX founder Sam Bankman-Fried, as well as former FTX executives Nishad Singh and Gary Wang, reported Reuters.
The settlement guarantees that FTX’s debtors recover the total value expended on acquiring Embed. This includes all assets registered under Bankman-Fried, Singh, and Wang’s names at Embed.
FTX’s debtors will continue to seek other claims against the ex-CEO and executives, according to FTX.
The three lawsuits that FTX filed in the U.S. Bankruptcy Court in Delaware in May targeted ex-insiders, including the indicted founder Bankman-Fried and Embed executives, in an attempt to recover more than $240 million spent on the Embed acquisition.
FTX completed the Embed acquisition approximately six weeks before its collapse in November.
During this period, the crypto exchange lost billions of dollars in customer funds while backing its own risky ventures. The current CEO of FTX, John Ray, has characterized these actions as “old-fashioned embezzlement.”
Why It Matters: The cryptocurrency market has seen impressive growth this year, with factors such as increased global acceptance and improved regulations contributing to its expansion. However, incidents like FTX’s bankruptcy and Bankman-Fried’s legal troubles cast a shadow over these advancements.
Last month, Bankman-Fried was found guilty of multiple criminal fraud charges, including securities fraud and money laundering. His conviction could result in a maximum sentence of 115 years in prison.
Read Next: Sam Bankman Fried Is Using A New Currency In Prison To Get Favors From Inmates — Fish
This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
FTX Photo by Sergei Elagin on Shutterstock
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