After months of negotiations, FTX agrees to pay $12.7 billion in a settlement with the CFTC to resolve legal disputes.
FTX, the exchange that collapsed in November 2022, has reached a settlement agreement with the Commodity Futures Trading Commission (CFTC), agreeing to pay $12.7 billion following the company’s collapse.
As part of the agreement, the CFTC has agreed not to receive any payment provided that FTX adheres to its reorganization plan, reimbursing victims who suffered losses from the exchange’s collapse. Consequently, FTX will pay up to $12.7 billion to creditors and customers, based on available funds.
Currently, FTX’s new management and the bankruptcy trustee are actively involved in recovering client funds.
Legal case and charges
In December 2022, the CFTC filed a lawsuit against FTX, alleging the company’s improper use of customer funds. The exchange allegedly used client funds for risky financial transactions through its affiliate, Alameda Research.
The agreement with the CFTC represents a step toward resolving the Chapter-11 bankruptcy proceedings, allowing for a quicker distribution to exchange creditors and clients.
