The bankrupt cryptocurrency exchange platform FTX has been ordered to pay over $12 billion in relief to former customers.
On Thursday, the Commodity Futures Trading Commission ordered FTX to pay $8.7 billion in restitution and an additional $4 billion to former customers, “which will be used to further compensate victims for losses suffered as a result of the massive fraudulent scheme orchestrated by Samuel Bankman-Fried.”
Mr. Bankman-Fried, the former head of FTX, was sentenced to 25 years in prison in March for stealing $8 billion from customers.
The order also provides reassurances that the federal government’s ongoing lawsuit against FTX will not diminish the funds available to defrauded customers.
Since the company’s disintegration in 2022, leadership at FTX has claimed that affected customers will receive 100% of their claims against the company. Additionally, FTX, which is short for Futures Exchange, filed for bankruptcy liquidation in March, a process that will pay back customer deposits.
• Vaughn Cockayne can be reached at vcockayne@washingtontimes.com.
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