FTX, a defunct crypto exchange, and Alameda Research, a trading firm, have been ordered by a U.S. judge to pay $12.7 billion to creditors. The consent order, approved by a New York judge, marks the end of a 20-month-long lawsuit from the Commodity Futures Trading Commission (CFTC). The order does not include civil penalties but prohibits FTX and Alameda from trading digital assets and acting as intermediaries in the market. FTX filed for bankruptcy in late 2022, leading to the CFTC’s lawsuit, which accused both companies of fraud and misrepresentations. Sam Bankman-Fried, the founder of FTX and Alameda, has already been sentenced to 25 years in prison and ordered to forfeit $11 billion for his involvement in fraudulent activities.
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FTX, Alameda Ordered to Pay $12.7B to Creditors by U.S. Judge
