Judge Ends 20-Month FTX Case

The court has finally issued the consent order in the FTX and Alameda cases, ending a longstanding lawsuit filed by the Commodities Futures Trading

A US court has finally approved the consent order in the FTX and Alameda cases, putting an end to a 20-month lawsuit filed by the Commodities Futures Trading Commission (CFTC).

The court has ordered FTX and Alameda to pay creditors $12.7 billion, without imposing any civil monetary penalties. However, the order prohibits the two firms from engaging in digital asset trading or acting as intermediaries in the market.

This development concludes the lawsuit filed by the CFTC after the FTX exchange filed for Chapter 11 bankruptcy in 2022. It's worth noting that this order does not limit or impair any other pursuits for legal or equitable remedies against the exchange's defendants in separate proceedings.

The CFTC had alleged that FTX and Alameda Research committed fraud and made misrepresentations while promoting the now-defunct exchange as the digital commodity asset platform.

FTX creditor activist @Sunil_trades on X did not immediately respond to BeInCrypto's request for comment.

As this unfolds, FTX founder Sam Bankman-Fried (SBF) is serving a 25-year sentence after being found guilty of seven counts of fraud, conspiracy, and money laundering earlier this year. The court also ordered him to forfeit $11 billion.

An unreleased interview revealed that SBF is not having an easy time in prison despite adopting a crew and sharing hot crypto tips with prison guards.

The FTX token, FTT, has seen a 1.4% decrease since the Thursday session opened, following the broader market trend.