TL;DR
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On Wednesday this week, a judge formally ordered FTX and it’s sister company, Alameda Research, to pay $12.7 Billion USD to creditors, ending a 20-month-long lawsuit with the Commodity Futures Trading Commission (CFTC).
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For our final ever Web3 Daily news article (we’ll say a proper goodbye on Sunday), it feels fitting to write about FTX.
(The company that both made us and broke us in many ways – because people love reading about crazy news; but FTX also crippled the crypto industry along with the advertising budgets for many web3 companies).
On Wednesday this week, a judge formally ordered FTX and it’s sister company, Alameda Research, to pay $12.7 Billion USD to creditors, ending a 20-month-long lawsuit with the Commodity Futures Trading Commission (CFTC).
The order also bans FTX and Alameda from trading digital assets and acting as intermediaries in the market.
(Nipping in the bud even the slightest chance of a comeback for the company).
How in the world can a bankrupt company pay $12.7B to creditors?
Well, when Sam Bankrun-Fraud was sentenced, he was forced to forfeit $11B in assets (and given 25 years in prison for seven counts of fraud, conspiracy, and money laundering).
Plus, Alameda and FTX had significant crypto holdings in tokens other than the FTT token (FTX’s native token which went to zero) like Solana, which, since the crash that they started, has mostly gone up in value.
For now, FTX and Alameda have filed for bankruptcy, with the full restructure being administered by Kroll – who have the fun job of figuring out what assets are still owned, and which creditors should get how much, and in what order.
Alright! Now you know.
