23-12-2023 (NEW YORK) Crypto exchange FTX, currently navigating bankruptcy proceedings, announced on Friday that a settlement agreement has been reached with founder Samuel Bankman-Fried and former FTX executives Nishad Singh and Gary Wang. The agreement aims to address claims linked to FTX’s acquisition of the stock trading platform Embed.
Under the terms of the settlement, Bankman-Fried, Singh, and Wang are key parties involved in resolving the claims. FTX debtors will recover the full value paid for the acquisition of Embed and gain control of all assets registered under the names of Bankman-Fried, Singh, and Wang at Embed.
Despite this resolution, FTX affirmed its commitment to pursuing other claims against the former CEO and executives. The settlement specifically addresses certain aspects of the broader legal dispute related to the acquisition.
In May, FTX initiated legal action by filing three lawsuits in the U.S. Bankruptcy Court in Delaware. The lawsuits targeted former FTX insiders, including the indicted founder Bankman-Fried, Embed executives like founder Michael Giles, and Embed shareholders. FTX sought to reclaim over $240 million, representing the amount it paid for the acquisition of Embed.
The Embed acquisition took place a mere six weeks before FTX’s dramatic collapse in November, where the crypto exchange suffered substantial losses in customer funds while engaging in high-risk investments. Current FTX CEO John Ray characterized these actions as “old-fashioned embezzlement.”
