in bankruptcy cryptocurrency exchange FTX announced that it has reached a settlement agreement with its founder Samuel Bankman-Fried and other parties.
This agreement aims to resolve certain allegations related to the acquisition of stock trading platform Embed.
The deal involves Bankman-Fried and former FTX executives Nishad Singh and Gary Wang. As part of the agreement, FTX creditors will recover 100% of the value paid for the acquisition of Embed and all assets held in Embed under the Bankman-Fried, Singh and Wang names.
According to the company’s new management, despite the agreement, creditors will continue to pursue other claims against the former CEO and executives.
In May, FTX filed three lawsuits in U.S. Bankruptcy Court in Delaware. Those lawsuits targeted former company employees, including accused founder Bankman-Fried, Embed executives including founder Michael Giles, and Embed shareholders. FTX was trying to get back more than $240 million it paid for Embed.
Embed’s acquisition by FTX was completed just six weeks before the crypto exchange crashed in November. The exchange lost billions of dollars of client money while supporting its own risky investments.
*This is not investment advice.
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