FTX has reached a $12.7 billion settlement agreement with the CFTC and is currently awaiting judicial approval

ChainCatcher news, according to TheBlock, the bankrupt cryptocurrency exchange FTX and the Commodity Futures Trading Commission (CFTC) have agreed to a $12.7 billion settlement, currently awaiting approval from a Delaware judge. The CFTC filed a fraud lawsuit against FTX, former CEO SBF, and its affiliate Alameda in 2022, claiming their actions led to $8 billion in customer losses.

The CFTC initially sought $52.2 billion in claims. As part of the settlement agreement, the CFTC agreed not to seek any compensation as long as FTX adheres to the restructuring plan. FTX will pay creditors up to $12.7 billion in compensation, depending on available funds. A hearing on the settlement motion will be held on August 6.

FTX filed for bankruptcy at the end of 2022. In May of this year, FTX's bankruptcy administrator announced a restructuring plan, under which creditors will receive full cash repayment. According to the plan, creditors with claims under $50,000 will be eligible for 118% compensation within 60 days after court approval.