FTX Bankruptcy Update: $12.7 Billion Settlement with CFTC

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FTX has reached a $12.7 billion settlement with the CFTC.
The exchange will pay $4 billion in disgorgement and $8.7 billion in restitution fees.
The CFTC is forgoing its own recovery to help investors recoup their money.

Defunct crypto exchange FTX, once valued at $32 billion at its peak and boasting over $10 billion in daily trading volume, has agreed to a $12.7 billion settlement with the Commodities and Futures Trading Commission (CFTC) over fraud charges. However, the settlement awaits approval from a Delaware judge.

The settlement agreement is a result of months of negotiations between the two entities and documents from a bankruptcy court confirms that the collapsed firm will pay $4 billion in disgorgement followed by $8.7 billion to be paid in restitution fees. The filing states that the agreement is “an integral and valuable component of the Debtors’ proposed chapter 11 reorganization plan,” adding:

“The Proposed Settlement thus provides much-needed certainty as to the magnitude of the Allowed CFTC Claim and allows these Chapter 11 Cases to move swiftly toward resolution, thereby enabling the prompt distribution to the Debtors’ other cre…

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