Crypto exchange FTX will refund all of its digital assets to its customers after receiving court approval. Shareholders could also benefit from this decision.

Customers will have access to all of their assets that were blocked when FTX filed for bankruptcy more than a year ago and Sam Bankman-Fried was subsequently found guilty of the charges in court.

The order was approved by US bankruptcy judge John Dorsey. It is estimated that shareholders could receive “part of the $1 billion in seized assets.”

As you may recall, in November 2022 it was said that the platform’s customers could receive only a fraction of the funds. However, “by June 2024, FTX had accumulated $12.6 billion in assets, a figure that could increase to $16.5 billion once all the platform’s assets are sold. These assets include stakes in various companies, such as the artificial intelligence company Anthropic.”

According to attorney Ken Pasquale, representing the creditors, this decision could be the result of the cryptocurrency market’s rally over the past year, which has been beneficial to an increase in the price of FTX’s assets.

As a result, the exchange has been able to “negotiate agreements with creditors and regulators, improving customers’ recovery prospects.”

Customers have been critical of the refund, as it will be made in cash and not in cryptocurrency. “Payments will not be immediate either, as FTX is in the process of establishing a trust and hiring a company to oversee the distribution of funds.”

M.Pino

Source: cripto247

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La entrada FTX to refund clients funds in full apareció primero en Bitfinance.

Customers of the FTX cryptocurrency platform who were affected by the bankruptcy will begin to receive their money refunded at the end of 2024.

This was recently agreed by the joint official liquidators of FTX Digital at a meeting in the Bahamas.

The bankruptcy of the cryptocurrency platform involves two processes that are developing in parallel, which are “the bankruptcy under Chapter 11, which is settled in a court in Delaware (United States), and the official liquidation process of FTX Digital, FTX’s Bahamas-based subsidiary, due to the “hopelessly mixed” nature of FTX’s accounting.”

To comply with affected clients, both parties will work together so that “no creditor receives less than the value to which they are entitled.”

The decision to pay the funds establishes that the Chapter 11 debtors and the joint official liquidators will make the first provisional refund in late 2024 to creditors with claims that were admitted “and satisfactory documentation.”

Since March 1, creditors began submitting claims on the FTX portal for this purpose. The deadline for creditors to choose one of the two bankruptcy processes and submit their claim is May 15, “although according to the meeting, the deadline is expected to be extended to at least June 2024 based on the latest developments.”

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Source: cripto247

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La entrada Refund of money to FTX clients will begin at the end of 2024 apareció primero en Bitfinance.

The cryptocurrency exchange FTX, which was in financial difficulty, reached an agreement to settle a dispute related to its European division. As a result, the company was returned to its previous owners.

According to a Reuters report, FTX agreed to sell FTX Europe to its founders for 32.7 million US dollars. This agreement suggests that the company had difficulty finding other interested buyers.

It is important to remember that FTX Europe was originally acquired in 2021 by Swiss startup Digital Assets AG (DAAG) in a deal that amounted to 323 million dollars.

Before accepting the sale, FTX attempted to recoup the funds it had invested in the acquisition. The exchange filed a lawsuit alleging that the purchase had been financed with client funds and arguing that the purchase price was a “massive overpricing”.

The founders of the startup, Patrick Gruhn and Robin Matzke, denied the allegations and counterattacked, requesting $256.6 million from FTX. According to Reuters, the dispute was finally resolved on February 21.

FTX Europe was also part of FTX’s presentation at Chapter 11 in the United States in November 2022. Several cryptocurrency exchanges showed interest in acquiring the European division after its bankruptcy, hoping to gain a share of the regional market that FTX had left.

K. Tovar

Source: iHold

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La entrada FTX to sell its European subsidiary apareció primero en Bitfinance.

The bankrupt cryptocurrency exchange FTX got the judge’s approval to sell more than $1 billion in shares of artificial intelligence startup Anthropic.

Judge John Dorsey of the Delaware Bankruptcy Court ruled at a hearing on 22 February that the sale could take place after FTX made concessions with some clients who opposed the sale.

Clients had alleged that Anthropic’s shares did not belong to FTX; they said they were acquired with embezzled client funds, citing evidence presented during the criminal trial of FTX co-founder Sam Bankman-Fried.

However, they agreed to the sale if they were later allowed to claim money from it for FTX users. FTX’s attorney at Sullivan & Cromwell, Andrew Dietderich, told the court that they are selling the shares of Anthropic “and we put the money in the bank.”

He added that FTX will reimburse users with the funds from the sale of its stake in Anthropic and add them to the $6.4 billion it currently has in the bank, an amount more than enough to reimburse anyone who can show they own a share of the profits.

The financial frenzy of Anthropic, one of the most attractive AI start-ups, raised $7.3 billion last year, as the appeal of AI changes the way business is done in Silicon Valley.

FTX filed a motion earlier this month to sell its 7.84% stake in Anthropic. It first invested about $530 million in the AI startup in April 2022, months before it collapsed and filed for Chapter 11 bankruptcy in November of that year.

K. Tovar

Source: Cointelegraph

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La entrada FTX will be able to sell $1 billion dollars apareció primero en Bitfinance.

Sam Bankman-Fried, former CEO of FTX, returned to court for one of the first times since his conviction. The reason for this appearance was to discuss possible conflicts of interest with their lawyers.

According to a February 21 report by the Inner City Press, Bankman-Fried waived his right to legal representation without conflict of interest with lawyers Marc Mukasey and Torrey Young. These two attorneys also represent former Celsius CEO Alex Mashinsky, who took a similar action at a February 20 hearing.

The appearance before the United States District Court for the Southern District of New York marked one of the first times Bankman-Fried had been seen outside of prison since a jury convicted him on seven felony counts in November 2023. Although SBF’s life behind bars has been largely out of the media spotlight, photos were posted on February 19 showing the former FTX CEO with other inmates.

According to the Inner City Press, Mukasey and Young will continue to represent SBF and Mashinsky. In contrast, attorneys Christian Everdell and Mark Cohen, who represented Bankman-Fried in his criminal trial in October 2023, will retire. Bankman-Fried’s sentencing is scheduled for March 28 before Judge Lewis Kaplan.

Bankman-Fried, once regarded by many as the ‘golden child of the crypto space’, resigned as CEO of FTX in November 2022. The firm filed for bankruptcy, and SBF was detained in the Bahamas pending extradition to the U.S., where he was later charged and convicted of fraud related to the handling of funds between FTX and Alameda Research.

After his trial in October 2023, SBF was initially expected to face five additional felony charges in March. However, reports in December suggested that prosecutors did not plan to proceed with the second trial, citing public interest.

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Source: ABCNews

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La entrada Sam Bankman-Fried is back on the jury. apareció primero en Bitfinance.

The United States Federal Reserve Board announced that it has completed an enforcement action against Farmington State Bank, a financial institution linked to the defunct cryptocurrency exchange, FTX.

According to the statement issued on February 6, the Fed reported that, following the enforcement action taken in July 2023, Farmington closed its operations and no longer operates as a bank.

Formerly known as Moonstone, Farmington State Bank received approximately $11.5 million from FTX’ssister company, Alameda Research, through FBH Corporation in March 2022. The Fed stated in August 2023 that the enforcement action was carried out to close operations and protect depositors.

After the FTX collapse in November 2022, Farmington initially announced its intention to leave the crypto space and return to its “original mission” as a community bank. However, neither the Fed’s enforcement action nor the termination of its action explicitly mentioned FTX or Alameda.

On January 31, the Fed announced that interest rates would remain in the range of 5.25% to 5.50%. Sometimes, the Fed’s announcements correlate with falls or increases in the price of cryptocurrencies, including bitcoin.

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Source: FederalReserve

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La entrada The Fed withdrew measures from a bank linked to FTX apareció primero en Bitfinance.

Sam Bankman-Fried, the controversial founder of cryptocurrency exchange platform FTX, will not face a second trial in the United States, prosecutors confirmed last Friday. After being found guilty last month of defrauding FTX users, Bankman-Fried was embroiled in a series of charges that culminated in a first conviction trial.

The U.S. Department of Justice. The U.S. decided not to proceed with a second trial, based on arguments presented in a Manhattan federal court. According to sources, prosecutors felt that another trial would only delay justice and would not contribute significantly to the case, given that much of the evidence had already been presented before.

Bankman-Fried, 31, was facing six additional charges following his November conviction for crimes including electronic fraud, securities fraud and money laundering. These charges related to violations of campaign finance laws and illegal money transfer operations. However, prosecutors decided not to pursue these additional charges.

The former CEO of FTX, extradited from the Bahamas in December 2022, remains in prison awaiting sentencing. The sentencing hearing is scheduled for March 2024, facing a possible maximum sentence of more than 100 years in prison. This turn of events marks another chapter in the fall of one of the most recognized names in the world of cryptocurrencies.

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Source: Diariobitcoin

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La entrada Sam Bankman-Fried will not have a second trial apareció primero en Bitfinance.

FTX, the cryptocurrency platform under scrutiny by the laws in the United States, proposed in court a restructuring of the company to return money to customers and also end the bankruptcy process.

As you may remember, FTX CEO Sam Bankman-Fried is in prison after being found guilty last November for one of the largest cryptocurrency financial frauds in the United States.

Previously, the platform had declared bankruptcy and initiated the relevant process before the authorities. However, the accusations against the CEO determined the theft of billions of dollars from FTX clients.

Creditor claims, so far, are estimated at USD 9 billion. In this regard, FTX is seeking an agreement with the court to stop the bankruptcy process by returning the funds. However, if it receives approval for this plan, “it means that creditors could lose millions in potential profits from settlement in fiat currency. Some creditors have pointed out that such a proposal would go against FTX’s Terms of Service, which stated that titles to digital assets belonged to clients and not to the exchange,” according to one of the reports.

This proposal must obtain the approval of creditors by vote, in addition to the court. According to the CoinDesk source, a hearing will be set in 2024. Furthermore, The Block notes that “several approval thresholds in both dollar amount and number of claimants are required for the plan to take effect.”

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Source: diariobitcoin

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La entrada FTX proposes measures to return money to clients apareció primero en Bitfinance.

The New York jury handling the case of Sam Bankman-Fried, founder of the FTX cryptocurrency platform, found him guilty of the seven crimes of fraud and money laundering with which he was charged.

The trial against Bankman-Fried, 31, lasted almost a month. The New York jury of twelve members reached a guilty verdict for defrauding thousands of victims who lost their money at the hands of the platform.

The hearings in the process took three days. The founder of FTX had already pleaded not guilty to the charges against him. He even denied that he knew of the mismanagement of FTX and its sister company, Alameda Research.

However, he could not convince the jury that he never had bad intentions against the clients.

“Deputy prosecutor Danielle Sassoon subjected Bankman-Fried to harsh questioning, pointing out contradictions between her private and public statements and obtaining her confession, for example, that FTX gave a large line of privileged credit to Alameda, which used the funds of customers to play, as he stated in closing arguments.”

It is important to remember that Sam Bankman-Fried was charged with allegedly diverting almost $9 billion from FTX clients for other purposes. The die is cast and a sentence of almost one hundred years in prison awaits him, despite the fact that the sentence is pending.

The US Department of Justice considers the conviction a victory that marks a milestone in the crypto market. It is a victory that sends a clear message to the industry that fraud and harm to investors and customers will not be tolerated.

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Source: Pagina12

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La entrada FTX founder found guilty of fraud apareció primero en Bitfinance.

October 3 marked the start of the trial against Sam Bankman-Fried, the founder of the cryptocurrency platform FTX, in federal court in Manhattan. This trial focuses on charges of fraud and money laundering. The first session was largely devoted to jury selection, and as anticipated, Bankman-Fried pleaded not guilty.

The noted financial genius, who at 31 years old experienced both success and the prospect of spending the rest of his life in prison if found guilty of several of the seven charges, arrived in the courtroom in a suit and tie, presenting hair noticeably shorter than his characteristic style, according to the media present in the room.

Judge Lewis Kaplan began by asking Bankman-Fried if he wanted to exercise his right not to testify, a decision that rested solely with him. The judge then reminded the defense that they still had the opportunity to submit a plea agreement, to which they responded in the negative.

Prior to the session, Bankman-Fried’s attorneys filed a complaint with the judge opposing the Prosecutor’s request to call FTX clients as witnesses to determine whether they fully understood how FTX handled its assets. and the role of the company as custodian of them.

The defense argued that the jury must evaluate the facts from the objective perspective of a reasonable person, suggesting that customers affected by FTX’s bankruptcy may not fit this category.

This dispute stands out as a crucial point in the development of the Bankman-Fried trial, since the jury will have to rule on the complex world of cryptocurrencies, about which they may have limited knowledge, as noted by the Wall Street Journal.

The newspaper reported that both the Prosecutor’s Office and the defense will seek to take advantage of this alleged lack of knowledge in their favor. The Prosecutor’s Office will seek to limit the trial to the concepts of lies and theft, avoiding going into technical details. On the other hand, the defense could insist on the more complex aspects to argue that the jury cannot convict crimes it does not understand, especially when the defendant has pleaded not guilty.

K. Tovar

Source: Bancaynegocios

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La entrada Sam Bankman-Fried pleads not guilty to fraud apareció primero en Bitfinance.