Search Results for: FTX

Binance has filed to dismiss a $1.76B lawsuit from the FTX estate, arguing the collapse was due to fraud by Sam Bankman-Fried, not its 2021 crypto deal.

FTX’s repayment plan was approved by a US court in October 2024. Under this plan, 98% of creditors will receive at least 118% of the amount they lost, but the repayments are being made in US dollars, not cryptocurrency.

FTX claims that Binance, along with its former CEO Changpeng Zhao (known as "CZ"), acted fraudulently and hurt FTX's financial stability. 

The settlement with Bybit is part of a wider effort by FTX’s bankruptcy estate to recover funds and repay creditors. 

The approval, given by US Bankruptcy Judge John Dorsey on 7 October, allows FTX to use up to $16.5 billion of recovered funds to repay customers who lost their money. 

The sudden changes to the payout plan have taken a toll on many FTX customers, who are already struggling after the exchange collapsed and froze their funds. 

The settlement includes $8.7 billion in restitution and $4 billion in compensation, with the latter subject to the advance payment of all creditor claims.

FTX is the prime example of how the rise and fall of exchange platforms can be swift and dramatic in the cryptocurrency space. Launched in 2019, FTX had quickly become a popular choice among crypto traders. It offered a range of services including spot markets, derivatives, options, and leveraged products. Founded by Sam Bankman-Fried, an MIT...

This settlement is a crucial development in FTX's bankruptcy proceedings. It resolves a potential source of prolonged and uncertain litigation between the crypto exchange and its largest creditor.

The auction will follow a "blind auction" format, which differs from the direct sales methods used in previous transactions.