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.