PANews reported on August 8 that according to Cointelegraph, a New York judge officially approved a $12.7 billion settlement agreement between FTX, Alameda Research and the U.S. Commodity Futures Trading Commission (CFTC). This means that FTX creditors will receive $12.7 billion in compensation. U.S. District Judge Peter Castel signed the settlement agreement on August 7 to resolve the CFTC's 20-month lawsuit. According to the agreement, FTX and Alameda will pay $8.7 billion to investors defrauded by founder Sam Bankman-Fried and an additional $4 billion.
The order also permanently prohibits FTX and Alameda Research from defrauding commodity customers, engaging in digital asset commodity trading, and prohibiting them from buying and selling digital asset commodities on behalf of third parties. The CFTC did not seek civil penalties, which means that the entire $12.7 billion will be used directly to repay FTX creditors. Currently, creditors are voting on how to accept compensation. They have until August 16 to file a request, and U.S. Bankruptcy Court Judge John Dorsey will make a final decision on October 7.
As reported last month, FTX reached a $12.7 billion settlement with the U.S. CFTC.
