According to TechFlow, New York judge Peter Castel formally approved a $12.7 billion consent order on August 7, requiring the defunct cryptocurrency exchange FTX and its affiliated trading company Alameda Research to repay the amount to FTX creditors. This is part of a settlement with the U.S. Commodity Futures Trading Commission (CFTC), ending a 20-month lawsuit.

The current FTX restructuring plan is expected to provide 98% of creditors (those with claims less than $50,000) with a return of 118%, based on the dollar value of FTX’s assets at the time of the bankruptcy filing.

Many creditors would prefer to receive payment in the form of cryptocurrency, which would take into account the approximately 150% increase in the total market value of the crypto market since FTX filed for Chapter 11 bankruptcy protection.

Creditors are voting on the payment method until August 16. U.S. Bankruptcy Court Judge John Dorsey will make a final decision on October 7.

Earlier news, FTX and the U.S. Commodity Futures Trading Commission (CFTC) have reached a $12.7 billion settlement agreement, pending approval by a Delaware judge. The settlement includes $8.7 billion in compensation and $4 billion in disgorgement. The hearing will be held on August 6.