ESPN's Adam Schefter first reported the deal before sharing the total compensation for both sides:
Cravens, 22, has a versatile skillset that could also allow him to play linebacker, but he is expected to be a safety for the Broncos, per Ian Rapoport of NFL Network.
He missed the entire 2017 season after undergoing treatment for post-concussion syndrome. The 2016 second-round pick informed the team of his decision to retire last September but was placed on the reserve list instead after a discussion with management.
Doctors cleared Cravens to return to football in December. His agent said he is expected to resume full activities in 2018, though Denver will undoubtedly have concerns about his willingness to play long term. Cravens has considered retirement twice in as many NFL seasons, due in part to family and injury issues.
Washington senior vice president of player personnel Doug Williams was noncommittal about keeping Cravens heading into the 2018 season.
"That's something that we have to see," Williams told reporters. "When everybody comes together, find out what the main situation is. And I think that's something that will work itself out, one way or the other."
Denver is taking a risk, but it's a calculated one. Cravens looked like a potential long-term starter during his rookie season, recording 34 tackles and an interception in 11 games. He also has three years remaining on his contract, which will see him max out at a $1.1 million base salary, per Spotrac.
Losing a draft pick could come back to haunt Denver if Washington hits on the pick and Cravens doesn't realize his promise, but this seems like a low-risk, high-reward scenario.
The Broncos have Justin Simmons as their starting strong safety and are unlikely to hand Cravens a first-string spot. Simmons was a breakout player in a disappointing 2017 season for Denver's defense.