FTX, CFTC Agree to $4 Billion Claim Settlement in Bankruptcy

FTX Trading Ltd. reached a $4 billion bankruptcy settlement with the Commodity Futures Trading Commission, resolving massive fraud claims against the collapsed cryptocurrency firm through a customer-friendly deal.

The agreement, presented to the US Bankruptcy Court for the District of Delaware, would cap the CFTC’s $52.2 billion claim against FTX and related entities at a significantly reduced amount and advance the companies’ bid to repay customers and exit Chapter 11.

The CFTC, which brought fraud enforcement actions against FTX and others tied to company founder Sam Bankman-Fried in 2022 after the businesses imploded, “is the most significant single creditor in ...