A U.S. District Judge has approved a $12.7 billion settlement for FTX and Alameda Research to resolve a 20-month lawsuit with the Commodity Futures Trading Commission (CFTC). This settlement includes $8.7 billion in restitution and $4 billion in disgorgement, with no civil penalties imposed. The court has also permanently banned FTX and Alameda from trading digital assets and serving as intermediaries. The settlement follows FTX's bankruptcy in late 2022, which led to massive financial losses for investors. FTX founder Sam Bankman-Fried was previously sentenced to 25 years in prison for fraud and ordered to forfeit $11 billion. The reorganization plan proposes a 118% return for 98% of creditors with claims under $50,000.