Crypto News – Regarding the acquisition of the stock-clearing platform Embed, the debtors of the now-defunct cryptocurrency exchange FTX have suggested pursuing a separate lawsuit in the bankruptcy case.
Separate Deal Proposal from FTX Debtors – 2023
The FTX debtors said they had negotiated a proposed settlement with former CEO Sam Bankman-Fried exclusively concerning the allegations made against him in the Embed Proceeding in a document made on December 22 to the U.S. Bankruptcy Court for the District of Delaware. Lawyers for FTX’s leadership claim that the cryptocurrency exchange bought Embed for $220 million through its U.S. affiliate in June 2022 despite doing virtually little due diligence.
The Plaintiffs’ entry into the Agreement is in the best interests of their estates, creditors and stakeholders, and the Agreement should be swiftly consummated. The Agreement’s terms will recover for the Plaintiffs’ estates 100% of the value conferred by the (simple agreements for future equity) upon Bankman-Fried. Bankman-Fried also relinquishes the right to, and assigns to Plaintiffs, all assets held in accounts in his name at Embed.
the filing
Certain Parts of the Embedded and SBF Case Will Be Included in the File
The December 22 filing states that in 2022, FTX US granted SBF two basic agreements for future equity, which stipulated that the former CEO of FTX would have to pay $160 million to acquire several shares in the cryptocurrency hedge fund. The resolution suggested returning to SBF the full amount of FTX US value to which it might be entitled.
The proposed agreement would not settle all of the assets the exchange is handling in relation to creditor claims. Rather, it would simply address specific portions of the bankruptcy case involving Embed and SBF.
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