FTX Settles With Five State Agencies Over $1.8 Billion in Claims

Five states have struck a deal with FTX Trading Ltd. to forgo their pursuit of nearly $1.8 billion in claims, allowing those funds to go to other unsecured creditors.

The agreement with state agencies in Texas, New Jersey, Tennessee, Mississippi, and Wisconsin would settle a variety of claims, including allegations that FTX sold unregistered securities, the bankrupt cryptocurrency exchange said in motion Thursday filed in the US Bankruptcy Court for the District of Delaware.

“This will maximize the distributable value available to non-governmental creditors,” FTX said.

The agreement allows FTX to avoid the costs and time of litigation as it ...