After 19 months of litigation, bankrupt cryptocurrency exchange FTX and the United States Commodities Futures Trading Commission have reached a settlement of $12.7 billion.
The agreement, subject to court approval, was the result of extensive negotiations between the two parties. According to Carlin R. Metzger, senior trial attorney for the CFTC, and John J. Ray III, CEO of FTX, the proposed settlement is a crucial element of FTX’s chapter 11 reorganization plan.
It will resolve the ongoing legal disputes and avoid further litigation while also mitigating the risk of diminished assets for creditors.
The lawsuit against FTX, its former CEO Sam Bankman-Fried, and sister trading firm Alameda Research was filed in December 2022.
