Amaranth, the hedge fund that collapsed as a result of big energy bets that went awry almost three years ago, is to pay $7.5m (£4.5m) to settle regulatory proceedings.

Last year, the Commodity Futures Trading Commission brought an action in the US District Court for the Southern District of New York, alleging that Amaranth and Brian Hunter, who was responsible for energy trading at Amaranth, attempted to manipulate the settlement price of natural gas futures contracts and accused the fund of making false statements to the New York Mercantile Exchange where the contracts were traded. The Federal Energy Regulatory Commission also brought a case against Amaranth.