Former FTX CEO Sam Bankman-Fried and Debtors Reach Settlement in Embed Proceeding
The bankrupt crypto exchange FTX and its debtors have reached a settlement agreement with founder Samuel Bankman-Fried and others to address certain claims related to the acquisition of the stock trading platform Embed.
In a December 22 filing with the United States Bankruptcy Court for the District of Delaware, the FTX debtors announced a proposed settlement with former CEO Sam “SBF” Bankman-Fried specifically related to claims in the Embed proceeding. According to the filing, the resolution would only address certain aspects of the bankruptcy case concerning Embed and SBF, rather than all the assets involved in dealing with creditor claims.
The proposed agreement is considered to be in the best interests of the estates, creditors, and stakeholders, recovering over $240 million FTX paid for Embed and all of the value conferred by the simple agreements for future equity upon Bankman-Fried and former FTX executives Nishad Singh and Gary Wang.
According to the filing, FTX US issued two simple agreements for future equity to Sam Bankman-Fried (SBF) in 2022, requiring him to pay $160 million for the right to a number of shares in the crypto hedge fund. The proposed settlement aims to return all the value of FTX US to which SBF may be entitled.
Under this agreement, the FTX debtors will recover 100% of the value paid for Embed’s acquisition and all the assets held under the names of Bankman-Fried, Singh, and Wang at Embed. Bankman-Fried will also relinquish the right to and assign to plaintiffs all assets held in accounts in his name at Embed.
“The Agreement’s terms will recover for the Plaintiffs’ estates 100% of the value conferred by the [simple agreements for future equity] upon Bankman-Fried. Bankman-Fried also relinquishes
Read more on cryptonews.com
