FTX Legal Team Stirs Cryptocurrency Market with Compensation Plan
- FTX's legal team prioritises compensating customers, ruling out exchange restart plans amid Sam Bankman-Fried's legal challenges.
- Poor financial records hamper FTX 2.0 launch, as investors shy away due to Sam Bankman-Fried's failures.
- FTX co-founder SBF faces sentencing on March 28, 2024, following wire fraud and money laundering convictions, impacting FTX's future.
FTX Lawyer Raises Concerns over Financial Records and FTX 2.0 Launch
The legal team's statement about cryptocurrency exchange FTX has once again caused a stir in the crypto market. In fact, during a recent hearing in the District Court of Delaware regarding the FTX Lawsuit, the legal team stated that the current plan is to fully compensate customers, with our complete focus on this.
In this statement, FTX lawyer Andy Dietderich mentioned that the entire focus is on paying customers and creditors of the exchange, and there are currently no plans to restart the exchange. Dietderich, a lawyer at Sullivan and Cromwell firm, stated that based on the results so far and current estimates, they expect to issue their disclosure statement in the coming days, providing information on how the complete fund settlement will be done with the customers.
Furthermore, FTX's lawyer expressed concerns about the poor financial and company records related to assets and employees kept by the firm during the time of Sam Bankman-Fried (SBF), the former CEO, and founder of the cryptocurrency exchange FTX. The situation is such that due to SBF's failures, no investors are interested in investing their capital in FTX 2.0. In such a situation, launching FTX 2.0 is difficult due to a lack of necessary capital.
On March 28, 2024, SBF to Receive Sentencing in FTX Fraud Case
FTX co-founder and former CEO Sam Bankman-Fried (SBF) was found guilty of seven charges related to wire fraud, securities fraud, commodity fraud, and conspiracy to commit money laundering following his first trial. The court has set March 28, 2024, as the date for sentencing SBF. However, he still has to face his second trial, which will start from March 11.
Coin Gabbar believes that due to the second trial, there will be no change in the date fixed for sentencing SBF. This means that even if a second trial goes on in court, Sam Bankman-Fried will have to face the punishment related to his first trial. It is noteworthy that after the first trial of SBF, Gary Wang, Caroline Ellison, and Nishad Singh were also convicted by the court on various charges.
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