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The two have been negotiating over the past few months, according to a court document filed on July 12 in the U.S. Bankruptcy Court for the District of Delaware. As part of the settlement, the CFTC agreed it would receive nothing as long as FTX complies with its reorganization plan. Therefore FTX will pay up to $12.7b to creditors, subject to available funds.
"The Proposed Settlement is an integral and valuable component of the Debtors’ proposed chapter 11 reorganization plan," according to the filing. "It resolves ongoing litigation and disputes with one of the largest creditors of the Debtors, avoids the cost and delay of further litigation, and mitigates a significant risk of diminution of the assets available for distribution to creditors."
