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FTX Creditors Announce They _d a Partial Settlement with Founder Sam Bankman-Fried
Bankrupt cryptocurrency exchange FTX has announced that it has reached a settlement agreement with its founder Samuel Bankman-Fried and other parties.
This deal aims to resolve some of the claims related to the acquisition of stock trading platform Embed.
The deal covers Bankman-Fried and former FTX executives Nishad Singh and Gary Wang. As part of the settlement, FTX creditors will recover 100% of the value paid for the acquisition of Embed and all assets held in Embed under the names Bankman-Fried, Singh, and Wang.
According to the company's new management, despite the settlement, creditors will continue to pursue other claims against the former CEO and executives.
In May, FTX filed three lawsuits in the U.S. Bankruptcy Court in Delaware. These lawsuits targeted accused founder Bankman-Fried, Embed executives, including founder Michael Giles, and former company employees, including Embed shareholders. FTX was trying to recover more than the $240 million it paid for Embed.
Embed's acquisition by FTX was completed just six weeks before the crypto exchange collapsed in November. The exchange has lost billions of dollars in customer money while backing its own risky investments.