FTX and Alameda Research Ordered to Pay $12.7 Billion in Creditor Repayment
Failed cryptocurrency exchange FTX and its sister company Alameda Research have been ordered to pay $12.7 billion to creditors. This ruling comes after a 20-month case with the Commodity Futures Trading Commission (CFTC) was resolved with a consent order issued by a New York judge.
US Judge Approves Payment Order for FTX
FTX, which was the first cryptocurrency exchange to file for bankruptcy in 2022, saw U.S. District Judge Peter Castel approve the payment order on August 7. The court document highlighted the actions of key individuals within the company, stating that without intervention, they were likely to continue engaging in unlawful practices.
Following the ruling, FTX and Alameda were prohibited from trading digital assets or acting as market brokers, although no civil penalties were imposed. Alameda made a deposit of 205,380 $WLD into Binance, worth $351,000, on August 8. The total assets held by FTX and Alameda amount to US$630 million, with various digital assets making up the portfolio.
Founder Sam Bankman-Fried Faces Legal Consequences
Sam Bankman-Fried, the founder of FTX and Alameda Research, was sentenced to 25 years in prison in March and ordered to surrender $11 billion. This came after convictions on multiple charges including fraud, conspiracy, and money laundering. The legal battle against FTX and its affiliates continues to unfold, marking a significant chapter in the cryptocurrency exchange industry.
As the case concludes, the implications of the ruling on FTX and Alameda Research reverberate throughout the cryptocurrency community, underscoring the importance of compliance and accountability in the evolving landscape of digital assets.
