- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2024-07-17T15:39:00
FTX Trading and the Commodity Futures Trading Commission (CFTC) have agreed on a $4 billion settlement in bankruptcy court to settle the CFTC’s lawsuit against the failed crypto trading platform.
The settlement agreement, filed Friday in U.S. Bankruptcy Court for the District of Delaware, would only take effect once the final resolution of the bankruptcy case is completed. The settlement also included a provision for FTX to pay $8.7 billion in restitution to its former customers.
The agreement settles a $52.2 billion complaint the CFTC filed against FTX in 2022 in the U.S. District Court for the Southern District of New York. The complaint alleged that FTX committed massive fraud when it co-mingled customer funds with Alameda Research, an entity owned by FTX founder Sam Bankman-Fried, and misappropriated up to $8 billion. The CFTC asked the court to compel FTX to pay restitution, disgorgement for ill-gotten gains, and a civil monetary penalty to be assessed by the court.
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