FTX has reached an agreement with the U.S. Commodity Futures Trading Commission (CFTC). The two parties agreed to a $12.7 billion settlement.

If the settlement is approved, it will pave the way for the exchange's restructuring and provide a degree of closure to its creditors.

Key points:

- The settlement includes $8.7 billion in compensation and $4 billion in disgorgement.

- The CFTC agreed to waive recovery and prioritize compensation for customers and creditors.

- A hearing on the settlement motion is scheduled for August 6.

- FTX's restructuring plan will compensate 98% of its creditors.

- The agreement was detailed in a court document on July 12. This was reached after months of negotiations between FTX and the CFTC.