FTX Reaches a Settlement with Emergent

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Insolvent cryptocurrency exchange FTX has reached a settlement with Emergent Technologies, founded by Sam Bankman-Fried, over the ownership of more than $600 million worth of Robinhood shares.

According to a motion filed by FTX CEO John Ray III in a Delaware Bankruptcy Court on September 6, FTX will pay Emergent $14 million to cover administrative expenses related to the withdrawal of a petition to claim 55 million Robinhood shares and cash.

The settlement also provides for a quick resolution of Emergent’s bankruptcy case in Antigua. FTX stated that the agreement will help to recover more funds for its creditors and avoid additional litigation costs.

FTX emphasized that this is a crucial step in its reorganization plan to maximize value for its creditors. In a declaration filed on September 6 in support of the deal, Ray stated that it was the result of “good faith negotiations between the parties” and that there was no collusion involved.