FTX Debtors Continue to Pursue Additional Claims; Settlement Agreement Solely Related to Embed Transaction
WILMINGTON, Del., Dec. 22, 2023 /PRNewswire/ — FTX Trading Ltd. (d.b.a. FTX.com) and its affiliated debtors (together, the “FTX Debtors”) announced today that its affiliated debtors, Alameda Research Ltd. (“Alameda“), West Realm Shires, Inc. (“WRS”), and West Realm Shires Services, Inc. (“WRSS”) (together, the “Plaintiffs”), have sought Bankruptcy Court authorization to enter into a binding settlement agreement (the “Settlement Agreement”) with Samuel Bankman-Fried, Nishad Singh and Gary Wang (together, the “Defendants”) solely to resolve Adversary Proceeding No. 23-50381 relating to the acquisition of Embed Financial Technologies (“Embed”).
Under the Settlement Agreement, the FTX Debtors will recover 100% of the value that the Defendants obtained in connection with the Embed acquisition, and also all assets held under the Defendants’ names at Embed. The Settlement Agreement will also not affect, compromise or release any claims the FTX Debtors have against the Defendants of any kind other than those claims specified in the Settlement Agreement for the Embed avoidance action.
“This agreement is in the best interests of the FTX Debtors’ estate, creditors and stakeholders,” said John J. Ray III, Chief Executive Officer and Chief Restructuring Officer of the FTX Debtors. “This agreement allows us to take further steps to resolve matters at Embed and at the same time, we are not inhibited in any way as we pursue additional outstanding claims in parallel and advance the work underway to maximize recoveries for creditors.”
On May 17, 2023, the Plaintiffs commenced Adversary Proceeding No. 23-50381 in the United States Bankruptcy Court for the District Court Delaware (the “Bankruptcy Court”) against Bankman-Fried, Singh and Wang by filing a complaint that sought, among other things, to avoid and recover transfers made by the Plaintiffs to the Defendants with regard to the June 2022 acquisition of Embed by WRS and to avoid any obligation by WRS relating to the Embed acquisition.
Advisors
The FTX Debtors are represented by Sullivan & Cromwell LLP as legal counsel and are assisted by Alvarez & Marsal North America, LLC as financial advisor, Perella Weinberg Partners LP as investment banker, Quinn Emanuel Urquhart & Sullivan, LLP as special counsel and Landis Rath & Cobb LLP as Delaware counsel.
Additional Information
U.S. Bankruptcy Court filings and other documents related to the court proceedings, including documents related to Adversary Proceeding No. 23-50381 and a copy of the Settlement Agreement, are available at https://cases.ra.kroll.com/FTX/.
SOURCE FTX
