FTX and Debtors Reach Settlement in Embed Acquisition Dispute
On Friday, the bankrupt cryptocurrency exchange FTX and its creditors announced a settlement agreement with founder Samuel Bankman-Fried and other former executives regarding claims linked to the acquisition of the stock trading platform Embed.
The agreement involves Bankman-Fried, along with former FTX executives Nishad Singh and Gary Wang. As part of the settlement, the FTX debtors will recover the full value paid for the acquisition of Embed and all assets registered under the names of Bankman-Fried, Singh, and Wang at Embed.
However, They clarified that it will persist in pursuing other claims against the former CEO and executives. In May, FTX initiated three lawsuits in the U.S. Bankruptcy Court in Delaware, targeting not only Bankman-Fried but also other insiders, including indicted founder Michael Giles and shareholders of Embed. The aim was to recover over $240 million, representing the amount paid for the Embed acquisition.
It’s noteworthy concluded the acquisition of Embed merely six weeks before the cryptocurrency exchange faced a collapse in November. The collapse resulted in significant losses of customer funds and was attributed to questionable financial practices, described by the current CEO John Ray as “old-fashioned embezzlement.”
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