Collapsed digital asset exchange FTX reached a settlement with the Commodity Futures Trading Commission (#CFTC ). This deal, pending court approval, marks a key moment in the ongoing #FTX bankruptcy saga that has captivated the crypto industry since late 2022.
The settlement involves a complex settlement of a $4 billion CFTC claim and provides a new mechanism for possible additional compensation to affected cryptocurrency holders.
Under the terms of the agreement, the CFTC's $4 billion claim will be granted but will be ranked below all other creditor claims and interest payments.
All funds that would have gone to the CFTC will instead be directed to the Supplemental Forgiveness Fund. This fund is designed to provide additional compensation to negatively impacted cryptocurrency holders but will only be activated once all creditors have been paid with interest and excess funds are available.
