Alameda Research

FTX and Alameda Research have been ordered to pay back $12.7 billion to their creditors. 

FTX and Alameda Research Case

<img src="https://static.bittime.com/cms-static/upload/FTX_and_Alamada_Research_Case_72e0831cb0.webp" alt="FTX and Alamada Research Case" width="2048" height="1152"><a style="text-decoration:none;" target="_blank" rel="noopener noreferrer" href="https://www.bittime.com?content_id=news&amp;cn=400001">Bittime</a> -&nbsp;FTX and Alameda Research have been ordered to pay back $12.7 billion to their creditors. This decision is part of the settlement of a 20-month lawsuit with the US CFTC.&nbsp;&nbsp;<a target="_blank" rel="noopener noreferrer" href="https://www.bittime.com/register?content_id=news&amp;cn=400001"><img src="https://static.bittime.com/cms-static/upload/Banner_2_988b13eca2.webp" alt="Banner 2" width="1999" height="415"></a><h2 style="line-height:1.38;margin-bottom:6pt;margin-top:14pt;text-align:justify;" dir="ltr">FTX Case Background</h2>FTX, founded by Sam Bankman-Fried, was once one of the largest crypto exchanges in the world.&nbsp;However, in November 2022, the company filed for bankruptcy protection under Chapter 11 after facing serious liquidity problems caused by alleged fraudulent practices and mismanagement of funds.&nbsp;Its affiliated company, Alameda Research, was also involved in this scandal, leading to huge losses for its investors and creditors.Read Also:&nbsp;<a style="text-decoration:none;" target="_blank" rel="noopener noreferrer" href="https://www.bittime.com/blog/ftx-berencana-kembalikan-dana">FTX Plans to Refund $16 Billion in Stablecoins</a><h2 style="line-height:1.38;margin-bottom:6pt;margin-top:14pt;text-align:justify;" dir="ltr">FTX Must Pay $12.7 Billion to Creditors</h2>With this ruling, FTX was required to pay $8.7 billion in compensation to investors who had been harmed by its founder, Sam Bankman-Fried, as well as an additional $4 billion in disgorgement or return of ill-gotten profits.What's interesting about this decision is that the CFTC is not seeking a civil monetary penalty, meaning the entire $12.7 billion amount will be used directly to repay FTX's creditors.&nbsp;&nbsp;Apart from payment obligations, this decision also permanently prohibits FTX and Alameda Research from carrying out any transactions involving digital asset commodities, as well as buying or selling digital assets on behalf of third parties. This means that FTX and Alameda will no longer be able to operate in the crypto industry in the future.<a target="_blank" rel="noopener noreferrer" href="https://www.bittime.com/blog?content_id=news&amp;cn=400001"><img src="https://static.bittime.com/cms-static/upload/Banner_Blog_7d687b658d.webp" alt="Banner Blog.webp" width="2985" height="620"></a><h2 style="line-height:1.38;margin-bottom:6pt;margin-top:14pt;text-align:justify;" dir="ltr">FTX Restructuring Plan</h2>FTX's ongoing restructuring process includes payment plans for most of its creditors. Under the proposed plan, about 98% of creditors with claims of less than $50,000 would receive a return of 118%, based on the value of FTX's assets at the time of the bankruptcy filing.&nbsp;&nbsp;However, many creditors prefer to accept payments in crypto rather than US dollars. The main reason is the approximately 150% increase in total crypto market capitalization since FTX filed for bankruptcy protection in November 2022. If payments are made in crypto, creditors can obtain a higher value compared to payments in cash.Currently, creditors are voting to choose the payment method they want. This voting will last until August 16 and the final decision will be made by Judge John Dorsey of the US Bankruptcy Court on October 7.Read Also:&nbsp;<a style="text-decoration:none;" target="_blank" rel="noopener noreferrer" href="https://www.bittime.com/en/blog/pelanggan-ftx-voting-proses-likuidasi">FTX Customers Must Vote on Liquidation Process Before August 17th!</a><h2 style="line-height:1.38;margin-bottom:12pt;margin-top:12pt;text-align:justify;" dir="ltr">How to Buy Crypto with Bittime</h2><a target="_blank" rel="noopener noreferrer" href="https://www.bittime.com/how-to-buy?content_id=news&amp;cn=400001"><img src="https://static.bittime.com/cms-static/upload/Banner_Daftar_Bittime_c71afe9bcb.webp" alt="Banner Daftar Bittime" width="2985" height="620"></a>You can buy and sell crypto assets in an easy and safe way via Bittime. over is one of the best crypto applications in Indonesia which is officially registered with Bappebti.&nbsp;To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.&nbsp;Monitor graphic movement<a style="text-decoration:none;" target="_blank" rel="noopener noreferrer" href="https://www.bittime.com/price/BTC?cn=400001">&nbsp;</a>price&nbsp;<a style="text-decoration:none;" target="_blank" rel="noopener noreferrer" href="https://www.bittime.com/price/BTC?content_id=news&amp;cn=400001">Bitcoin (BTC)</a>,<a style="text-decoration:none;" target="_blank" rel="noopener noreferrer" href="https://www.bittime.com/price/ETH?content_id=news&amp;cn=400001"> Ethereum (ETH)</a>,<a style="text-decoration:none;" target="_blank" rel="noopener noreferrer" href="https://www.bittime.com/price/SOL?content_id=news&amp;cn=400001"> Solana (SOL)</a>&nbsp;and other cryptos to find out today's crypto market trends in real-time on Bittime.

FTX and Alameda Research Required to Pay $12.7 Billion to Creditors