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

In a document dated August 7, US District Judge Peter Castel formally approved the $12.7 billion settlement agreement reached between FTX and Alameda to resolve the 20-month CFTC lawsuit. It is worth noting that the CFTC did not seek civil fines, meaning that the entire $12.7 billion will be used to directly repay FTX creditors.Earlier reports indicated that bankrupt cryptocurrency exchange FTX and the US Commodity Futures Trading Commission (CFTC) had agreed to a $12.7 billion settlement agreement, which is currently awaiting approval from a Delaware judge. According to court documents filed with the US Bankruptcy Court in Delaware on July 12, the two companies have been negotiating for the past few months. As part of the settlement agreement, the CFTC agreed not to seek any compensation as long as FTX complies with the restructuring plan. Therefore, FTX will pay up to $12.7 billion in compensation to creditors, depending on the availability of funds. A hearing on the motion for settlement was held on August 6.