FTX and CFTC agree on a $12.7B settlement, with funds aimed at repaying creditors. Court approval is pending, with a hearing set for Aug. 6.
FTX, the bankrupt cryptocurrency exchange, and the United States Commodity Futures Trading Commission (CFTC) have reached a $12.7 billion settlement agreement. This deal, resolving a 19-month lawsuit, is now pending court approval. The agreement includes significant restitution and disgorgement amounts aimed at repaying FTX’s creditors.
Key Points:
Settlement Agreement: FTX and the CFTC have agreed on a $12.7 billion settlement to resolve ongoing litigation.
Restitution and Disgorgement: The settlement includes $8.7 billion in restitution and $4 billion in disgorgement, with no civil monetary penalty sought by the CFTC.
Creditor Payouts: The settlement funds will be used to repay FTX’s creditors, with a proposed 118% return for 98% of creditors with claims under $50,000.
Pending Court Approval: The agreement requires approval from the Bankruptcy Court for the District of Delaware, with a hearing set for August 6.
Creditor Preferences: Creditors are voting on their preferred payout method, with options for in-kind cryptocurrency payouts reflecting market value increases since FTX’s bankruptcy.
The $12.7 billion settlement between FTX and the CFTC marks a significant step in resolving the bankruptcy proceedings of the cryptocurrency exchange. Pending court approval, the settlement aims to provide substantial returns to creditors, potentially revitalizing their financial standing.
Source: Cointelegraph
Comments