- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2024-08-09T18:09:00
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.
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Waves of fallout from the collapse of cryptocurrency trading platform FTX continue to ripple, as accounting firm Prager Metis has learned.
FTX Trading and the Commodity Futures Trading Commission have agreed on a $4 billion settlement in bankruptcy court to settle the CFTC’s lawsuit against the failed crypto trading platform.
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