US District Judge Peter Castel has approved a $12.7 billion settlement deal for the failed exchange FTX and its sister company, Alameda Research. The settlement, reached on August 7, 2024, resolves a legal dispute with the US Commodity Futures Trading Commission (CFTC) following FTX's collapse in late 2022. The agreement allocates $8.7 billion to investors misled by former CEO Sam Bankman-Fried, with the remaining $4 billion going towards FTX creditors. Notably, no civil monetary penalties were imposed on FTX or Alameda, focusing instead on expediting creditor reimbursement. The deal also prohibits deceptive practices in digital asset trading. Creditors may receive up to 118% of their claims under $50,000, with the option to choose between bitcoin or fiat currency by August 16. The settlement signals a potential shift in the crypto industry, emphasizing the importance of investor protection and regulatory oversight. Read more AI-generated news on: https://app.chaingpt.org/news