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 that would repay customers whose deposits were locked during the crypto exchange’s late 2022 collapse.
FTX has said 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.
Mutib Khalid is a skilled content writer and digital marketer with a knack for crafting compelling narratives and optimizing digital strategies. Excel in creating engaging content that drives results and enhances online presence. Passionate about blending creativity with data-driven approaches, Mutib Khalid helps brands connect with their audience and achieve their goals.