By FTX, the bankrupt crypto exchange, announced on Friday a settlement reached with some of its debtors concerning the contentious acquisition of stock trading platform Embed. The agreement involves founder Samuel Bankman-Fried and former FTX executives Nishad Singh and Gary Wang.
This settlement ensures the FTX debtors will recoup the entire value spent on acquiring Embed and gain control of assets held by Bankman-Fried, Singh, and Wang under Embed’s name.
However, FTX clarified that while this resolution addresses certain claims, they intend to pursue other legal actions against the former CEO and executives.
In May, FTX initiated three lawsuits in the U.S. Bankruptcy Court in Delaware against former insiders, including indicted founder Bankman-Fried, Embed’s founder Michael Giles, and Embed shareholders. The lawsuits aimed to recover over $240 million, the amount paid for Embed.
The Embed acquisition by FTX, completed just six weeks prior to the crypto exchange’s collapse in November, resulted in substantial losses of customer funds. The exchange’s current CEO, John Ray, labeled these actions as “old-fashioned embezzlement,” attributing the collapse to the exchange’s risky investments.
