Bankrupt crypto exchange FTX and the U.S. Commodity Futures Trading Commission have agreed to a $12.7 billion settlement, pending approval from a Delaware judge.

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.

"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."

The CFTC lodged a complaint in 2022 against the exchange, former FTX CEO Sam …