TechFlow news — On August 7, New York Judge Peter Castel formally approved a $12.7 billion consent order requiring the collapsed cryptocurrency exchange FTX and its affiliated trading firm Alameda Research to repay this amount to FTX creditors. This marks part of a settlement with the U.S. Commodity Futures Trading Commission (CFTC), ending a 20-month legal proceeding.
The current FTX restructuring plan is expected to provide 118% repayment for 98% of creditors (those with claims under $50,000), based on the dollar value of assets at the time of FTX's bankruptcy filing.
Many creditors prefer to receive payments in cryptocurrency, which would reflect the approximately 150% growth in the total market capitalization of the crypto market since FTX filed for Chapter 11 bankruptcy protection.
Creditors are currently voting on the form of payment, with the deadline set for August 16. U.S. Bankruptcy Court Judge John Dorsey will make the final decision on October 7.
Previous report: FTX has reached a $12.7 billion settlement agreement with the U.S. Commodity Futures Trading Commission (CFTC), pending approval by a Delaware judge. The settlement includes $8.7 billion in restitution and $4 billion in civil penalties. A hearing was scheduled for August 6.
