In the course of a class action lawsuit, former executives and promoters of the defunct cryptocurrency exchange FTX have agreed to a payment which amounts to $1.35 million United States dollars.
The deal, which features Gary Wang, a co-founder of FTX, Nishad Singh, a former engineering chief, and Caroline Ellison, a former chief executive officer of Alameda Research, a sister trading firm, is intended to recompense individuals who have suffered losses as a result of the collapse of the cryptocurrency exchange.
As a result of the settlement, people who were cheated by FTX will have a better chance of receiving their monies.
The executives have entered guilty pleas to the allegations of fraud and have testified against Sam Bankman-Fried, the former CEO of FTX who experienced a great deal of embarrassment.
On Thursday, Bankman-Fried was found guilty of fraud-related offenses that led to the collapse of FTX and was sentenced to 25 years in jail.
The sentence that was handed down to Bankman-Fried was lighter than the forty to fifty years that were requested by federal prosecutors, but it was also longer than the six and a half years that were suggested by his legal team.
A maximum term of one hundred and ten years in prison was imposed on Bankman-Fried.
After it was discovered that the balance sheet of Alameda Research held a substantial proportion of illiquid assets, the majority of which were in FTT, the exchange's native token that it produced, the cryptocurrency exchange that he formed and which was domiciled in the Bahamas filed for bankruptcy in November of 2022.
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