FTX’s $12.7 Billion Settlement Approved: Creditors to Be Repaid

U.S. District Judge Peter Castel has given the green light to a $12.7 billion settlement for creditors affected by the FTX collapse, according to Coindesk.

This settlement, involving FTX and Alameda Research, marks the conclusion of a prolonged lawsuit by the Commodity Futures Trading Commission (CFTC).

Under this agreement, FTX and Alameda will collectively repay $12.7 billion to their creditors. The settlement resolves a 20-month legal battle without pursuing any criminal charges or administrative penalties.

However, FTX and Alameda are barred from engaging in cryptocurrency trading or serving as market intermediaries moving forward.

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The collapse of FTX in late 2022 led to substantial investor losses, prompting the CFTC to file a lawsuit accusing the firms of fraud and misrepresentation.

The regulatory body claimed that their actions resulted in an $8 billion loss for customers.