Cryptocurrency exchange FTX will pay its customers

The CFTC announced that the Southern District Court of New York has ordered FTX to pay $12.7 billion in monetary relief to its customers and fraud victims.

The statement noted that FTX was found to have violated the Commodity Exchange Act (CEA) and CFTC regulations, and that FTX and Alameda Research made material misrepresentations to their clients.

FTX GOES BANKRUPT IN 2022

Cryptocurrency exchange FTX went bankrupt in November 2022, and it was announced that the company's CEO Sam Bankman-Fried had resigned.

Bankman-Fried was detained in the Bahamas in December following a US criminal complaint. He was extradited to the US on December 21, 2022, and was ordered released on $250 million bail until the hearing.

Bankman-Fried denied the “fraud” charges against him, saying he made mistakes but never intended to steal the funds. Bankman-Fried's bail was revoked for trying to influence witnesses and the former CEO was sent to jail in Brooklyn.

Bankman-Fried was sentenced to 25 years in prison in March when he was tried on charges of fraud and money laundering.