Commodity Futures Trading Commission. The independent federal agency responsible for regulating trading exchanges and commodities in particular has just won a final settlement from a New York judge in a dispute between it and the bankrupt crypto platform FTX. After 20 months of proceedings, the two sides managed to agree on a sum of 12.7 billion dollars in July, and all that was missing was a final green light from the courts, now it is done. Let’s look at the details of this arrangement.
20 months after the proceedings began, the CFTC and FTX reached a settlement confirmed by a judge
In November 2022, the FTX platform went bankrupt and took it with it billion loss, users’ money and the innocence of the entire cryptosphere, which would then enter a crypto winter lasting more than two years. in trial unusual, it was now necessary to try the protagonists of the case in criminal proceedings, but it was also civil proceedings regarding the payment to customers made by the raw materials regulator: CFTC.
Ares 20 months hearings, debates and discussions, the regulator led by Christopher Giancarlo and the exchange’s new leadership last July found agreement around the sum $12.7 billion. We still remember that at the very beginning of history, the CFTC required 52.2 billion, but that this amount was vehemently rejected by the teams of John Ray, now the head of the platform.
No civil penalties for FTX, but no trading in digital assets
Finally, August 7th last, judge Peter Castel of the New York court very officially confirmed this agreement $12.7 billion, which ends this procedure. We were still waiting to see if there would also be a civil penalties but the judge ruled no.
FTX is therefore ordered to pay 8.7 billion dollars the customer returns more money 4 billion another, and the judge added that neither FTX nor Alameda would ever have the right again “trade digital assets and act as market intermediaries”. And we won’t find many people who regret this decision.
That side of the FTX affair has therefore been turned, but we will hear more about all of this as the main accused, Sam Bankman-Fried, has appealed the verdict and is due to return to court again. In the meantime, refunds to unhappy users are being clarified and terms are currently being discussed. Therefore, the FTX disaster (unfortunately) did not finish feeding the justice pages of the cryptosphere.