#ftx

Gary Wang, co-founder and former CTO of FTX, has been sentenced to probation instead of prison time, as reported by Matthew Russell of Inner City Press on X.

Sam Trabucco, a former Alameda executive, has agreed to turn over $70 million, along with his yacht and apartment, to FTX creditors.

The bankrupt exchange FTX continues its legal pursuit against former partners and clients to recover funds for creditors. The latest targets are Binance and its former CEO Changpeng Zhao, from whom FTX seeks to reclaim $1.8 billion.

On October 30, Nishad Singh, the former CTO of bankrupt crypto exchange FTX, was sentenced to time served (18 months) and three years of supervised release, becoming the fourth former FTX employee to be officially sentenced.

According to Bloomberg, former FTX user Nikolas Gierczyk has filed a lawsuit against the hedge fund Olympus Peak, which specializes in trading distressed debt claims.

In November 2022, FTX, once one of the largest cryptocurrency exchanges, filed for bankruptcy. Estimates indicated the company owed approximately $11.2 billion to its creditors.

The fallout from FTX’s bankruptcy continues to escalate. Newly revealed details about the size of expected compensation have sparked outrage among creditors. It has come to light that a portion of the funds recovered from the liquidation of the exchange's assets is set to go to preferred shareholders.

Silvergate, a banking partner of the bankrupt entities FTX and Alameda, will pay fines totaling $63 million to the Federal Reserve and the California Department of Financial Protection and Innovation (DFPI). Of this sum, $43 million will be paid to the Fed and $20 million to the DFPI. Additionally, the SEC seeks to impose another $50 million in penalties on the company.

Bankrupt crypto platform FTX (FTX Trading Ltd) has announced that its court-approved Chapter 11 plan will go live on January 3, 2025. This marks a major milestone in returning funds to clients and creditors.

Basketball legend Shaquille O'Neal has agreed to pay $11 million to settle a lawsuit related to promoting his Astrals NFT collection and its native cryptocurrency, Galaxy.

Alameda Research, now bankrupt, has filed a legal suit seeking over $90 million from Alexander Ivanov, the founder of the Waves blockchain.

Gary Wang, co-founder and former Chief Technological Officer of FTX has appealed for no jail time as a key witness in the case.

The bankrupt crypto exchange FTX reached a $228 million settlement with Bybit, aimed at reclaiming assets to bolster funds for client and creditor repayments. FTX's restructuring team actively sought to recover assets to strengthen its payout capacity.

Former Alameda Research CEO Caroline Ellison is surrendering everything she owns to leave the FTX saga behind for good.

FTX Estate is set to auction 22.3 million Worldcoin (WLD) tokens at a significant discount, currently valued at $35 million. This sale is part of the ongoing efforts to recover funds for creditors of the bankrupt crypto exchange founded by Sam Bankman-Fried.

Caroline Ellison, the former CEO of Alameda Research and a key witness in the trial of FTX founder Sam Bankman-Fried, has been sentenced to two years in prison, followed by three years of supervised release. During this period, she must cooperate with the U.S. Securities and Exchange Commission (SEC). The court also ordered her to pay an $11 billion fine and forfeit her assets.

A group of FTX creditors, led by Sunil Kavuri, has officially opposed the company's reorganization plan. They presented multiple arguments against the plan, highlighting issues such as the taxation of returned assets, disregard for property rights, and a misalignment with client interests.