FTX Ordered To Pay $12.7 Billion To Customers

A U.S. court has ordered the bankrupt cryptocurrency exchange FTX to pay $12.7 billion in relief to its customers, the Commodity Futures Trading Commission (CFTC) announced, as reported by Jasper Ward for Reuters.

In March, FTX founder Sam Bankman-Fried was sentenced to 25 years in prison for stealing $8 billion from customers. I Photo: MIT Bitcoin Club Wikimedia Commons

In March, FTX founder Sam Bankman-Fried was sentenced to 25 years in prison for stealing $8 billion from customers.

"The order requires FTX to pay $8.7 billion in restitution and $4 billion in disgorgement, which will be used to further compensate victims for losses suffered as a result of the massive fraudulent scheme orchestrated by Samuel Bankman-Fried," the commission said in a statement.

FTX had previously committed to a bankruptcy liquidation plan that would repay customers whose deposits were locked during the crypto exchange's late 2022 collapse.

FTX has stated that its customers will receive 100% recovery on their claims against the company, based on the value of their accounts at the time the company filed for bankruptcy.

The CFTC agreement resolves a potential roadblock to that repayment, ensuring that the government's lawsuit against FTX will not reduce the funds available to FTX customers.