Bankrupt crypto exchange FTX to pay $ 12.7 billion to investors by court order

The scandalous bankrupt cryptocurrency exchange FTX and Alameda Research have been ordered to pay $ 12.7 billion to creditors after a New York court ruling, thus ending a lawsuit by the Commodity Futures Trading Commission (CFTC). The court order prohibits FTX and Alameda from trading digital assets and acting as market intermediaries, but does not include civil fines, CoinDesk reports.

The bankruptcy of cryptocurrency exchange FTX and trading firm Alameda Research occurred at the end of 2022 and led to the loss of billions of dollars in investor funds. After that, the CFTC filed a lawsuit against FTX and Alameda, accusing them of fraud and false statements related to the publication of information about FTX as a platform for trading digital assets.

Judge Peter Castel delivered the judgment on August 7. The court’s verdict does not impose civil fines, but prohibits FTX and Alameda from trading digital assets and acting as intermediaries in the market.