TL;DR
On Wednesday this week, a choose formally ordered FTX and it’s sister firm, Alameda Analysis, to pay $12.7 Billion USD to collectors, ending a 20-month-long lawsuit with the Commodity Futures Buying and selling Fee (CFTC).
Full Story
For our closing ever Web3 Every day information article (we’ll say a correct goodbye on Sunday), it feels becoming to put in writing about FTX.
(The corporate that each made us and broke us in some ways – as a result of individuals love studying about loopy information; however FTX additionally crippled the crypto business together with the promoting budgets for a lot of web3 corporations).
On Wednesday this week, a choose formally ordered FTX and it’s sister firm, Alameda Analysis, to pay $12.7 Billion USD to collectors, ending a 20-month-long lawsuit with the Commodity Futures Buying and selling Fee (CFTC).
The order additionally bans FTX and Alameda from buying and selling digital property and performing as intermediaries available in the market.
(Nipping within the bud even the slightest likelihood of a comeback for the corporate).
How on the earth can a bankrupt firm pay $12.7B to collectors?
Nicely, when Sam Bankrun-Fraud was sentenced, he was compelled to forfeit $11B in property (and given 25 years in jail for seven counts of fraud, conspiracy, and cash laundering).
Plus, Alameda and FTX had important crypto holdings in tokens apart from the FTT token (FTX’s native token which went to zero) like Solana, which, for the reason that crash that they began, has principally gone up in worth.
For now, FTX and Alameda have filed for chapter, with the complete restructure being administered by Kroll – who’ve the enjoyable job of determining what property are nonetheless owned, and which collectors ought to get how a lot, and in what order.
Alright! Now you already know.
