FTX debtors propose separate deal with Sam Bankman-Fried over Embed acquisition
FTX US acquired Embed for $220 million in June 2022, with the crypto exchange issuing two simple agreements for future equity to Sam Bankman-Fried.
The debtors of defunct cryptocurrency exchange FTX have proposed separate litigation in the bankruptcy case over acquiring stock-clearing platform Embed.
In a Dec. 22 filing for United States Bankruptcy Court for the District of Delaware, the FTX debtors said they had reached a proposed settlement with former CEO Sam “SBF” Bankman-Fried “solely with respect to the claims asserted against him in the Embed Proceeding.” The crypto exchange acquired Embed for $220 million through its U.S. arm in June 2022 despite having “performed almost no due diligence,” according to lawyers representing FTX’s leadership.
“The Plaintiffs’ entry into the Agreement is in the best interests of their estates, creditors and stakeholders, and the Agreement should be swiftly consummated,” said the filing. “The Agreement’s terms will recover for the Plaintiffs’ estates 100% of the value conferred by the [simple agreements for future equity] upon Bankman-Fried. Bankman-Fried also relinquishes the right to, and assigns to Plaintiffs, all assets held in accounts in his name at Embed.”
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