TL;DR
On Wednesday this week, a decide 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 write down about FTX.
(The corporate that each made us and broke us in some ways – as a result of folks love studying about loopy information; however FTX additionally crippled the crypto business together with the promoting budgets for a lot of web3 firms).
On Wednesday this week, a decide 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 probability 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 pressured 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 vital crypto holdings in tokens aside from the FTT token (FTX’s native token which went to zero) like Solana, which, because the crash that they began, has largely gone up in worth.
For now, FTX and Alameda have filed for chapter, with the total 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.
