Bankman-Fried scandal: FTX ordered to pay $12 billion to its customers in relief

( NewsNation ) — A U.S. court ordered bankrupt cryptocurrency exchange FTX to pay $12.7 billion to its customers in relief, the Commodity Futures Trading Commission announced on Thursday .

FTX founder Samuel Bankman-Fried was sentenced to 25 years in prison in March for stealing $8 billion from its customers.

The CFTC has ordered FTX to pay $8.7 billion in restitution and $4 billion in disgorgement, “which will be used to further compensate victims for losses suffered as a result of the massive fraudulent scheme orchestrated by Samuel Bankman-Fried,” according to the CFTC .

FTX previously committed to a bankruptcy liquidation that will repay customers who lost money when the crypto exchange collapsed in 2022. The company has said customers will receive 100% recovery on their claims against the company.

According to CFTC Chairman Rostin Behnam, regulatory tools like governance and customer protections were “simply not there” in this case.

“FTX used age-old tactics to create an illusion that it was a safe and secure place to access crypto markets,” Behman said in a statement from the CFTC.

For the latest news, weather, sports, and streaming video, head to NewsNation.