Margaret Keeley, the former wife of an MI5 agent codenamed Stakeknife, has reached a significant settlement with the state in a civil case alleging torture and degradation. Keeley initiated legal proceedings in 2008 against the Police Service of Northern Ireland, the Ministry of Defence, and Freddie Scappaticci himself.

Keeley claimed that in 1994, both the police and the Ministry of Defence knowingly permitted her to be interrogated and threatened by Scappaticci, who was working as an agent for the state. She stated that the trauma of the events, which occurred over a two-day period in north Belfast, has affected her for more than three decades.

"Bringing this case was never about money, but seeking truth and accountability and ensuring the truth was acknowledged," Keeley said. "I hope it is another step towards accountability and justice for all those affected by Stakeknife."

Scappaticci, a former British agent who infiltrated the Irish Republican Army, was known by the codename Stakeknife. Peter Keeley, also known as Kevin Fulton, was Margaret Keeley's former husband and was also a former British agent who infiltrated the IRA.

Claire McKeegan, a solicitor at Phoenix Law representing Keeley, described the settlement as a "hugely significant day" for all of Scappaticci's alleged victims. "This is the first time the state has settled a civil action concerning the conduct of its agent, and it represents an important step towards accountability," McKeegan said. "It brings a conclusion to a long and protracted legal battle which our client fought for decades."