A New York judge has approved a $12.7 billion settlement between the Commodity Futures Trading Commission (CFTC) and FTX and Alameda Research. This decision marks an important step in the long process of resolving this complex case.
Details of the settlement between the CFTC, FTX and Alameda
Under the terms of the agreement approved by the judge, the CFTC will receive $5 billion from FTX and $7.7 billion from Alameda Research. These amounts represent a substantial portion of the assets of both companies, which were placed under the control of the court as part of the bankruptcy proceedings. The settlement allows the CFTC to recover a portion of the funds it believes were illegally diverted from customers.
The court’s approval of this settlement sends a strong signal about the authorities’ willingness to hold those responsible to account for their actions. It also shows that the CFTC, as derivatives regulator, intends to play a major role in resolving this case. However, there are still many unanswered questions about the exact causes of FTX’s collapse and the individual responsibilities of the company’s executives.
Impact of the settlement on ongoing proceedings
The $12.7 billion settlement will have a significant impact on other ongoing legal proceedings linked to the FTX bankruptcy. Indeed, the funds recovered by the CFTC will be added to the other assets seized by the court, which will then be distributed to FTX’s aggrieved creditors and customers.
However, it is important to note that this settlement does not put an end to all lawsuits. Other government agencies, such as the Department of Justice, continue to investigate possible criminal offenses related to the FTX collapse. In addition, many customers and creditors have taken individual legal action to try to recover their funds. It will therefore take considerable time and effort to fully resolve this matter.
