SHALOM OLALEYE
A U.S. court has ordered the bankrupt cryptocurrency exchange FTX to pay $12.7 billion in relief to its customers. The ruling follows allegations that FTX misled its users by presenting itself as a secure platform for accessing crypto markets, while in reality, it misappropriated customer deposits for risky investments.
FTX has pledged that customers will receive 100% recovery on their claims, based on the value of their accounts at the time the company filed for bankruptcy.
Under the settlement, FTX is required to pay $8.7 billion in restitution and an additional $4 billion in disgorgement, which will further compensate victims of the exchange’s downfall.
FTX’s founder, Sam Bankman-Fried, was sentenced to 25 years in prison in March for stealing $8 billion from customers, a conviction he is currently appealing. Meanwhile, FTX continues to resolve issues with U.S. regulators and former business partners, while selling assets purchased with misappropriated funds.