FTX Looks to Return Up to $12.7 Billion to Creditors in CFTC Settlement

IconCryptoNewsTerminal Staff16 Jul, 2024

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FTX Looks to Return Up to $12.7 Billion to Creditors in CFTC Settlement

Troubled crypto exchange FTX is looking to return up to $12.7 billion to creditors as part of a settlement with the U.S. Commodity Futures Trading Commission (CFTC). The settlement, which was reported by The Block, consists of $8.7 billion in creditor recoveries and $4 billion in CFTC recoveries, with the CFTC’s $4 billion claim subordinated to other creditors. As part of the settlement, the CFTC has agreed not to pursue any claims against FTX so long as FTX complies with its bankruptcy plan. This would allow FTX to return up to $12.7 billion to creditors, depending on the availability of funds. The settlement is a significant step in the bankruptcy proceedings for FTX, which filed for bankruptcy in November 2022 following the collapse of its native token, FTT. The collapse of FTX sent shockwaves through the crypto industry and led to the loss of billions of dollars in customer funds. The settlement with the CFTC is a positive development for creditors, as it provides them with a path to recover some of their lost funds. However, it is important to note that the settlement is still subject to approval by the bankruptcy court.

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