FTX Settles with CFTC for $12.7 Billion
The fallen crypto giant FTX has reached a settlement with the Commodity Futures Trading Commission (CFTC), agreeing to pay a hefty $12.7 billion to resolve the lawsuit.
Court documents reveal that the restructured company will pay a $4 billion disgorgement fee and an additional $8.7 billion in restitution fees, subject to court approval.
This settlement brings much-needed certainty to the claims against FTX and allows its Chapter 11 proceedings to move forward, enabling faster distribution of funds to creditors and customers.
FTX, known for its crypto trading and betting platform, imploded in November 2022 after revelations surfaced about its misuse of customer funds. Sam Bankman-Fried, FTX’s co-founder and former CEO, was arrested and later sentenced to 25 years in prison for fraud and money laundering charges.
The CFTC’s lawsuit, filed in December 2022, accused FTX of misappropriating customer funds, prompting a scramble to recover lost assets. This settlement marks a significant step in the ongoing efforts to hold FTX accountable and provide some measure of justice to those impacted by its downfall.
