- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2024-07-17T15:39:00
FTX Trading and the Commodity Futures Trading Commission (CFTC) have agreed on a $4 billion settlement in bankruptcy court to settle the CFTC’s lawsuit against the failed crypto trading platform.
The settlement agreement, filed Friday in U.S. Bankruptcy Court for the District of Delaware, would only take effect once the final resolution of the bankruptcy case is completed. The settlement also included a provision for FTX to pay $8.7 billion in restitution to its former customers.
The agreement settles a $52.2 billion complaint the CFTC filed against FTX in 2022 in the U.S. District Court for the Southern District of New York. The complaint alleged that FTX committed massive fraud when it co-mingled customer funds with Alameda Research, an entity owned by FTX founder Sam Bankman-Fried, and misappropriated up to $8 billion. The CFTC asked the court to compel FTX to pay restitution, disgorgement for ill-gotten gains, and a civil monetary penalty to be assessed by the court.
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Why the wild disparity in the sentences of Binance’s Changpeng Zhao and FTX’s Sam Bankman-Fried? Aaron Nicodemus argues the performance of the compliance teams at the two cryptocurrency exchanges was as big a contrast as the penalties earned by their respective founders.
The former chief compliance officer at cryptocurrency exchange FTX paid off whistleblowers and their lawyers trying to expose the company’s fraud, according to a lawsuit filed in bankruptcy court by FTX and its debtors.
A flurry of criminal and civil fraud charges laid against FTX founder Sam Bankman-Fried have pulled back the veil on the cryptocurrency exchange’s complete lack of internal controls and toothless risk management procedures.
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U.S. Customs and Border Protection will make it a priority to check shipments of aluminum, polyvinyl chloride, and seafood from China and elsewhere in the region for links to forced labor, according to an updated Uyghur Forced Labor Prevention Act enforcement strategy.
