A New York judge has approved a $12.7 billion settlement involving defunct crypto exchange FTX, its sister firm Alameda Research, and the United States Commodity Futures Trading Commission (CFTC). This settlement concludes a 20-month legal battle and mandates FTX and Alameda to repay $12.7 billion to FTX creditors, including $8.7 billion to investors defrauded by founder Sam Bankman-Fried. The settlement also includes a ban on both firms from trading cryptocurrencies and acting as market intermediaries. The CFTC has emphasized the need for further crypto legislation following this landmark ruling.