Judge approves $12.7 billion settlement between FTX, Alameda and CFTC

In a document dated August 7, U.S. District Judge Peter Castel formally approved a $12.7 billion settlement between FTX and Alameda and the CFTC to resolve the CFTC's 20-month-long lawsuit. It is worth noting that the CFTC did not seek civil penalties, which means that the entire $12.7 billion will be used to directly repay FTX creditors. (Cointelegraph) Previous news, the bankrupt cryptocurrency exchange FTX and the U.S. Commodity Futures Trading Commission (CFTC) have agreed to a $12.7 billion settlement, which is currently awaiting approval from a Delaware judge. According to court documents filed with the U.S. Delaware Bankruptcy Court on July 12, the two companies have been negotiating for the past few months. As part of the settlement, the CFTC agreed that as long as FTX complies with the reorganization plan, the CFTC will not collect any compensation. As a result, FTX will pay up to $12.7 billion in compensation to creditors, depending on available funds.