FTX has settled with the Commodity Futures Trading Commission (CFTC) and will pay $12.7 billion to resolve the lawsuit. The bankruptcy court documents show that the restructured company will pay $4 billion in disgorgement fees and $8.7 billion in restitution fees, subject to court approval. This settlement aims to expedite the resolution of FTX's Chapter 11 cases and facilitate payments to creditors and customers.

FTX collapsed in November 2022 after it was revealed that customer funds were misused for risky bets through its sister company, Alameda Research. Co-founder Sam Bankman-Fried was arrested and sentenced to 25 years in prison for fraud and money laundering. Authorities and FTX's new management have been working to recover lost customer funds. The CFTC had alleged in December 2022 that FTX misappropriated customer funds, leading to the civil lawsuit.

Source: Decrypt