Former executives of bankrupt cryptocurrency exchange FTX and promoters have consented to a US$1.35 million settlement in a class action lawsuit.
The agreement, which includes FTX co-founder Gary Wang, former engineering chief Nishad Singh and Caroline Ellison, the former CEO of sister trading firm Alameda Research, aims to compensate victims of the cryptocurrency exchange’s collapse.
The settlement will help determine the allocation of funds to those defrauded by FTX.
The executives have pleaded guilty to fraud charges and testified against Sam Bankman-Fried, the disgraced ex-CEO of FTX.
Bankman-Fried was sentenced to 25 years in prison on Thursday for fraud related to the downfall of FTX.
Bankman-Fried’s conviction was less than the 40 to 50 years sought by federal prosecutors, but also higher than the six-and-a-half years proposed by his attorneys.
Bankman-Fried faced a maximum sentence of 110 years behind bars.
The Bahamas-based cryptocurrency exchange he founded filed for bankruptcy in November 2022 after it was revealed that the balance sheet of Alameda Research contained a significant proportion of illiquid assets, mostly in FTT, the exchange’s native token it created.
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- Source: https://forkast.news/ftx-executives-settle-fraud-lawsuit-for-us1-35-mln/
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