FTX, a defunct crypto exchange, has reached a preliminary agreement to settle with the US Commodity Futures Trading Commission (CFTC), marking a significant step in its bankruptcy proceedings since its abrupt collapse in 2022.
In a court filing on July 12, FTX disclosed a proposed $4 billion settlement with the CFTC, a substantial reduction from the initial demand of $52.2 billion.
This agreement, subject to approval by Judge John Dorsey on August 6, aims to prioritize payments to other creditors over the CFTC’s claims.
The settlement seeks to expedite asset distribution and avoid prolonged legal battles, preventing additional penalties while subordinating the CFTC’s demands.
Despite concerns from creditors like Sunil Kavuri regarding potential compromises in restitution, FTX continues to face opposition to its repayment plan, which offers $14.5 billion to $16 billion based on November 2022 asset valuations.
Analysts speculate that FTX’s efforts to settle and repay debts could impact broader crypto markets positively, potentially influencing market dynamics as the proceedings continue.
Chainlink co-founder Sergey Nazarov predicts that tokenized real-world assets (RWAs) will soon surpass cryptocurrencies in value.
Telegram is facing potential restrictions in India following a significant data breach linked to the app.
Anthony Scaramucci, founder of SkyBridge Capital, announced that Vice President Kamala Harris is working on her campaign’s cryptocurrency policies, with support from crypto advocates.
Terraform Labs, the creator of the Terra (LUNA) ecosystem, has received court approval to wind down operations after settling fraud allegations with the U.S. SEC related to the collapse of its TerraUSD stablecoin and LUNA token, which caused $40 billion in losses in 2022.