TL; DR
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a judge on Wednesday this week formally ordered FTX and its sister company, Alameda Research, will pay $12.7 billion to creditors, ending a 20-month lawsuit with the Commodity Futures Trading Commission (CFTC).
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For our last ever Web3 Daily news article (we say goodbye on Sunday), it feels fitting to write about FTX.
(The company that both made and broke us in many ways – because people Love reading about crazy news; but FTX has also crippled the crypto industry, along with the advertising budgets for many web3 companies).
a judge on Wednesday this week formally ordered FTX and its sister company, Alameda Research, will pay $12.7 billion to creditors, ending a 20-month lawsuit with the Commodity Futures Trading Commission (CFTC).
The order also prohibits FTX and Alameda from trading digital assets and acting as intermediaries in the market.
(Even the slightest chance of a comeback for the company is nipped in the bud).
How on earth can a bankrupt company pay $12.7 billion to creditors?
Well, when Sam Bankrun-Fraud was convicted, he was forced to forfeit $11 billion in assets (and received 25 years in prison on seven counts of fraud, conspiracy, and money laundering).
In addition, Alameda and FTX had significant crypto positions in tokens other than the FTT token (FTX’s original token that went to zero), such as Solana, which has since the crash she started, has largely increased in value.
For now, FTX and Alameda have filed for bankruptcy, with the entire restructuring being managed by Krol – who have the fun job of finding out which assets are still owned, and which creditors should get how much, and in what order.
Agree! Now you know.