FTX, Alameda Research to pay $12.7B in settlement with US agency

By Ovunc Kutlu

ISTANBUL (AA) - The defunct cryptocurrency exchange platform FTX and its hedge fund Alameda Research agreed to pay $12.7 billion in settlement with the Commodity Futures Trading Commission (CFTC).

The settlement was approved by Judge P. Kevin Castel of the US District Court for the Southern District of New York, according to court filings on Wednesday.

While FTX and Alameda will pay $8.7 billion in restitution for consumers' financial losses, they will pay another $4 billion for their gains obtained through regulation violations,

The amount will be managed through FTX and Alameda's bankruptcy proceedings, as the assets from the bankruptcy will be used to repay the companies' creditors.

In March, FTX's founder and former CEO Samuel Bankman-Fried was sentenced to 25 years in prison in fraud and conspiracy case that saw the collapse of his crypto exchange platform and Alameda Research.