🚀 🤝 🤝 🚀 💰

FTX Eyes Negotiations with US Government Over Bankruptcy Claims 🤝💰

Crypto exchange FTX is aiming to negotiate a reduction in the US government's bankruptcy claims to as low as $3 to $5 billion.

According to court filings in Delaware bankruptcy court, FTX is looking to bargain down the US government's bankruptcy claims to between $3 to $5 billion.

In response to claims by FTX founder Sam Bankman-Fried that the company could "fully" repay its debts and thus should receive a lenient prison sentence, court documents outlined these estimations.

However, FTX's current CEO John Ray refuted Bankman-Fried's claims in court filings, stating that such statements distorted the situation.

Last week, federal prosecutors stated that following Sam Bankman-Fried's conviction for defrauding customers of the bankrupt FTX cryptocurrency exchange of $8 billion, he could face a sentence of 40 to 50 years in prison.

FTX Declared Bankruptcy in November 2022
Crypto exchange FTX filed for bankruptcy in November 2022, with CEO Sam Bankman-Fried resigning.

Bankman-Fried was arrested in the Bahamas in December following the US indictment. He denied the "fraud" charges, claiming he made mistakes but never aimed to steal funds. In his court testimony, he maintained he acted in good faith and believed his actions were in line with policies prepared by FTX lawyers.