

FTX is expected to recover US$240 million in funds! SBF's acquisition of brokerage Embed has reached a settlement
The restructuring team and debtors of bankrupt cryptocurrency exchange FTX announced on the 23rd that they had reached an agreement with FTX’s co-founders SBF and Gary Wang and former engineering director Nishad Singh. A settlement agreement aimed at resolving certain claims related to the acquisition of stock trading platform Embed.
According to comprehensive reports from Reuters and Cointelegraph, FTX submitted a document to the U.S. Bankruptcy Court in Delaware on Saturday as part of a settlement agreement. According to the document, FTX debtors are expected to recover all the amounts they originally paid to Embed, and will also be able to recover all assets held by SBF, Singh, Wang and others in Embed.
FTX is expected to recover US$240 million in funds
The lawyer appointed by the FTX debtor said that FTX acquired Embed for US$220 million in June 2022, but little progress was made in the process Adequate due diligence.
In order to further recover assets, the FTX bankruptcy and reorganization team filed three lawsuits in May this year to recover more than US$240 million in funds paid by executives and shareholders to SBF and Embed founder Michael Giles.
In addition, the document also mentioned that FTX US issued two future equity simple agreements to SBF, requiring the former CEO of FTX to pay US$160 million for the right to purchase a large number of FTXUS shares. The latest proposed settlement also proposes that SBF return all FTXUS value to which he may be entitled.
"It is in the best interest of the Exchange's estate, creditors and stakeholders that the plaintiff join this settlement agreement, which should be completed expeditiously. Under the terms of the agreement, the plaintiff's estate will receive Bankman-Fried [ Future Equity Simple Agreement] 100% of the value assigned. Bankman-Fried also relinquished its rights to all assets held in accounts in Embed's name and transferred them to the plaintiff."
FTX vs. The Bahamas Subsidiaries will integrate bilateral assets
The FTX restructuring team emphasized that it is important to note that the proposed settlement agreement only applies to claims related to the Embed acquisition. The debtors will continue to make other claims against former CEO SBF and other senior executives. In July this year, FTX formally filed a lawsuit against SBF and multiple former executives, requiring them to return more than $1 billion in company assets that were allegedly misappropriated before FTX went bankrupt.
On the 19th of last week, the FTX restructuring team and the debtors submitted legal documents announcing that they had reached a global settlement agreement with FTX Digital Markets, a subsidiary of FTX in the Bahamas. The agreement aims to integrate the assets of both parties to more equitably distribute compensation funds to clients.
The above is the detailed content of FTX is expected to recover US$240 million in funds! SBF's acquisition of brokerage Embed has reached a settlement. For more information, please follow other related articles on the PHP Chinese website!

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