If approved by the court, the CFTC will not require FTX to pay the $2.7 billion civil penalty, meaning the entire $12.7 billion will be used to repay the exchange’s creditors.
“This settlement is an integral and valuable component of FTX’s proposed reorganization plan,” the CFTC and FTX’s temporary administrators said in a joint statement.
The parties noted that the settlement agreement will resolve ongoing litigation with regulatory authorities and will also avoid additional costs and legal expenses that reduce the bankruptcy estate and the amount of funds available for distribution among creditors.
Earlier, a group of creditors of the FTX exchange filed a collective objection to the exchange’s debt repayment plan proposed by the platform’s temporary administration.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
