FTX Ordered To Pay $12.7 Billion To Customers, US CFTC Says

FTX has been ordered to pay $12.7 billion in relief to its customers, according to the Commodity Futures Trading Commission (CFTC). In a statement, CFTC Chairman Rostin Behnam said the crypto exchange drew customers in with “an illusion that it was a safe and secure place to access crypto markets,” then misappropriated their customer deposits to make its own risky investments. Reuters reports: The repayment order implements a settlement between the CFTC and the bankrupt crypto exchange, which has committed to a bankruptcy liquidation that will repay customers whose deposits were locked during its late 2022 collapse. FTX has said that its customers will receive 100% recovery on their claims against the company, based on the value of their accounts at the time it filed for bankruptcy. The CFTC agreement resolves a potential roadblock to that repayment, ensuring that the government’s lawsuit against FTX will not reduce the funds available to its customers. The CFTC agreed not to collect any payment from FTX until all its customers are repaid, with interest.

The CFTC settlement requires FTX to pay $8.7 billion in restitution and $4 billion in disgorgement, which will be used to further compensate victims for losses suffered during the exchange’s collapse. […] FTX is currently soliciting votes on its bankruptcy proposal but faces opposition from some customers who feel short-changed by the decision to repay them based on much-lower cryptocurrency prices from November 2022. Votes are due on Aug. 16, and FTX intends to seek final approval of its wind-down plan on Oct. 7.

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Cloud Growth Puts Hyperscalers On Track To 60% of Data Capacity By 2029

Dan Robinson writes via The Register: Hyperscalers are forecast to account for more than 60 percent of datacenter space by 2029, a stark reversal on just seven years ago when the majority of capacity was made up of on-premises facilities. This trend is the result of demand for cloud services and consumer-oriented digital services such as social networking, e-commerce and online gaming pushing growth in hyperscale bit barns, those operated by megacorps including Amazon, Microsoft and Meta. The figures were published by Synergy Research Group, which says they are drawn from several detailed quarterly tracking research services to build an analysis of datacenter volume and trends.

As of last year’s data, those hyperscale companies accounted for 41 percent of the entire global data dormitory capacity, but their share is growing fast. Just over half of the hyperscaler capacity is comprised of own-build facilities, with the rest made up of leased server farms, operated by providers such as Digital Realty or Equinix. On-premises datacenters run by enterprises themselves now account for 37 percent of the total, a drop from when they made up 60 percent a few years ago. The remainder (22 percent) is accounted for by non-hyperscale colocation datacenters.

What the figures appear to show is that hyperscale volume is growing faster than colocation or on-prem capacity — by an average of 22 percent each year. Hence Synergy believes that while colocation’s share of the total will slowly decrease over time, actual colo capacity will continue to rise steadily. Likewise, the proportion of overall bit barn space represented by on-premise facilities is forecast by Synergy to decline by almost three percentage points each year, although the analyst thinks the actual total capacity represented by on-premises datacenters is set to remain relatively stable. It’s a case of on-prem essentially standing still in an expanding market.

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