A U.S. court ordered bankrupt FTX to pay $12.7 billion in relief to customers, according to the Commodity Futures Trading Commission.
Luring the customers with a false sense of security, then misused their deposits for risky investments, said CFTC Chairman Rostin Behnam.
The repayment order follows a CFTC settlement with the bankrupt crypto exchange, committing to repay customers from its 2022 collapse.
FTX announced customers will receive full recovery based on account values at bankruptcy filing, ensuring 100% claim compensation.
The CFTC agreement clears a repayment hurdle, ensuring the government’s FTX lawsuit won’t reduce funds available to customers.
The CFTC decided not to collect any payments from FTX until all of its clients were refunded, plus interest.
This settlement mandates FTX to pay $8.7 billion in restitution and $4 billion in disgorgement, further compensating victims.
FTX did not immediately reply to a request for comment.
Sam Bankman-Fried, sentenced to 25 years in March for stealing $8 billion, has since appealed the conviction.
FTX utilized bankruptcy to settle with regulators, former partners, and sell misappropriated assets, including real estate and crypto investments.
FTX seeks votes on its bankruptcy plan, facing customer opposition over repayment based on lower November 2022 crypto prices.
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