Judge Approves $12.7B Settlement Between FTX, Alameda, and CFTC
A $12.7 billion settlement has been approved by U.S. District Judge Peter Castel, resolving a 20-month lawsuit involving the collapsed crypto exchange FTX, its affiliate Alameda Research, and the Commodity Futures Trading Commission (CFTC). The settlement will allocate $8.7 billion to investors defrauded by FTX founder Sam Bankman-Fried and an additional $4 billion, which will be used to repay FTX's creditors. The CFTC did not seek any civil monetary penalties in this case, ensuring that the entire sum will benefit the creditors.
The settlement also imposes a permanent ban on FTX and Alameda from engaging in transactions involving digital asset commodities and from acting as intermediaries for third parties in such transactions. This legal resolution marks a significant milestone in the bankruptcy proceedings of FTX and aims to address the financial losses incurred by investors. The final decision on the settlement will be overseen by U.S. Bankruptcy Court Judge John Dorsey.
