FTX Debtors Seek a Separate Agreement With Sam Bankman-Fried Regarding the Embed Acquisition

Published on:

Last Updated on December 27, 2023 by Bitfinsider

Debtors of the failed cryptocurrency exchange FTX have sought separate litigation in the bankruptcy case regarding the acquisition of stock-clearing platform Embed.

The FTX debtors announced in a Dec. 22 statement with the United States Bankruptcy Court for the District of Delaware that they had negotiated a proposed settlement with former CEO Sam “SBF” Bankman-Fried “solely with respect to the claims asserted against him in the Embed Proceeding.” According to lawyers representing FTX’s leadership, the crypto exchange acquired Embed for $220 million through its US business in June 2022 despite having “performed almost no due diligence.”

“The Plaintiffs’ entry into the Agreement is in the best interests of their estates, creditors and stakeholders, and the Agreement should be swiftly consummated,” according to the court petition. “The terms of the Agreement will recover for the Plaintiffs’ estates 100% of the value conferred upon Bankman-Fried by the simple agreements for future equity.” Bankman-Fried further relinquishes and assigns to Plaintiffs all assets held in his name in Embed accounts.”

According to the Dec. 22 filing, FTX US issued two simple future equity agreements to SBF in 2022, requiring the former FTX CEO to pay $160 million for the right to a number of shares in the crypto hedge fund. The resolution advocated returning the entire amount of FTX US to which SBF may be entitled.

The proposed arrangement would only resolve select portions of the Embed and SBF bankruptcy case, rather than all of the assets the exchange is dealing with while it deals with creditor claims. Following the resignation of Bankman-Fried, who has since been convicted of seven felony charges in the United States, FTX filed for bankruptcy in November 2022.

On December 19, FTX debtors announced plans to pool assets with FTX Digital Markets, the firm’s Bahamian branch, in order to disburse monies to consumers. The declaration was the latest effort by debtors to manage firm assets and repay creditors in accordance with proposed restructuring plans.


Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.

Related