Bankrupt crypto exchange FTX and its debtors on Friday said they have entered into a settlement agreement with founder Samuel Bankman-Fried and others to resolve some claims related to its acquisition of stock trading platform Embed.
The settlement agreement is between Bankman-Fried, and former FTX executives Nishad Singh and Gary Wang.
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 as part of the settlement.
The debtors will continue to pursue other claims against the former CEO and executives, FTX said.
FTX in May filed three lawsuits in the U.S. Bankruptcy Court in Delaware targeting former FTX insiders including indicted founder Bankman-Fried, Embed executives including founder Michael Giles, and Embed shareholders. FTX was seeking to claw back more than $240 million it paid for Embed.
FTX closed on the Embed acquisition just six weeks before the crypto exchange collapsed in November. It lost billions in customer money while propping up its own risky investments, actions its current CEO John Ray called “old-fashioned embezzlement”.
(Reporting by Jaiveer Singh Shekhawat and Bhanvi Satija in Bengaluru; Editing by Shounak Dasgupta)
