The debtors of defunct cryptocurrency exchange FTX have proposed separate litigation in the bankruptcy case over acquiring stock-clearing platform Embed. The debtors have reached a proposed settlement with former CEO Sam “SBF” Bankman-Fried regarding the claims asserted against him in the Embed Proceeding. The agreement aims to recover 100% of the value conferred by the simple agreements for future equity upon Bankman-Fried and requires him to relinquish all assets held in accounts in his name at Embed.
FTX US issued two simple agreements for future equity to SBF in 2022, and the proposed resolution suggests that all the value to which SBF may be entitled be returned. However, it is important to note that this agreement only resolves certain aspects of the bankruptcy case concerning Embed and SBF, and not all the assets the exchange is dealing with as it faces creditor claims.
FTX filed for bankruptcy in November 2022 following the resignation of Bankman-Fried, who has since been convicted of seven felony charges in the United States. In an effort to distribute funds to customers, FTX debtors have announced plans to pool assets with FTX Digital Markets, the firm’s Bahamian arm.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 🇧🇸 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Sam Bankman-Fried |
| Companies | SBF, Embed, United States Bankruptcy Court for the District of Delaware, FTX, FTX US, FTX Digital Markets |
| Currencies | None |
| Securities | None |
