FTX, Alameda to pay $12.7B in historic settlement with CFTC

FTX Trading and its sister cryptocurrency exchange Alameda Research will pay $12.7 billion to settle charges laid by the Commodity Futures Trading Commission that the two companies violated the Commodity Exchange Act and CFTC regulations.

FTX agreed to pay $8.7 billion in restitution and $4 billion in disgorgement, the CFTC announce Thursday in a press release. The agreement mirrors a related settlement reached last month in U.S. Bankruptcy Court for the District of Delaware.

Payments by FTX towards its CFTC disgorgement obligation “will be used to further compensate victims through a supplemental remission fund,” the CFTC said. Terms of the agreement are pending the bankruptcy court’s approval. The agency noted the settlement is the largest recovery in its history.