FTX, Alameda to pay $12.7B in CFTC settlement per court

A judge approved Alameda and FTX’s settlement with the Commodity Futures Trading Commission on Wednesday. 

The proposed deal was first submitted earlier this summer but was awaiting a judge’s sign-off. FTX and Alameda will pay roughly $8.7 billion in restitution and an additional $4 billion in disgorgement as part of the settlement, for a total sum of nearly $13 billion.

The funds will be made available to creditors, and the CFTC said it won’t receive anything. The agreement ends the 2022 lawsuit from the CFTC against FTX, Alameda and former CEO Sam Bankman-Fried. 

As part of the agreement, FTX and Alameda are prohibited from “having any commodity interests or digital asset commodities including but not limited to” bitcoin, ether and USDT. They’re also banned from accepting or receiving funds for purchasing or selling “digital asset commodities.”

Read more: FTX’s bankruptcy isn’t the success you think it is

“The FTX Entity Defendants shall cooperate fully and truthfully with the CFTC, including the CFTC’s Division of Enforcement, in this action, and in any other litigation, proceeding or investigation involving possible violations of the Act or Commission Regulations by any entity or individual related in any way to the FTX Entity Defendants, including any current or future investigations or litigation related to, or arising from, this action,” the filing said. 

FTX is still undergoing bankruptcy proceedings, having sent out creditor ballots for its proposed wind-down plan last month. 

The current plan — which will need creditor support prior to a court sign-off — says that creditors will receive over 100% of their claims, however, those prices are locked in at November 2022 levels, which was when the exchange filed for bankruptcy. 

The plan could be the final one filed with the court, meaning the bankruptcy could be close to coming to an end.

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