FTX, Alameda Ordered to Pay $12.7B to Creditors by U.S. Judge

The order doesn't include civil penalties but bans FTX and its sister concern, Alameda, formerly a heavyweight crypto market maker, from trading digital assets and acting as intermediaries in the market.

Defunct crypto exchange FTX and its trading firm, Alameda Research, have been ordered by a U.S. judge to pay $12.7 billion to creditors.

The order was officially approved on Wednesday by a New York judge, putting an end to a 20-month-long lawsuit from the Commodity Futures Trading Commission (CFTC).

The approval was passed on August 7 by United States District Judge Peter Castel, according to a filing. Notably, the order did not include any civil monetary penalty.

Furthermore, the order bans FTX and its sister concern, Alameda, which was previously a heavyweight crypto market maker, from trading digital assets and acting as intermediaries in the market.

FTX filed for bankruptcy in late 2022, leading to the loss of billions of dollars in investor wealth. Following this, the CFTC filed a lawsuit against FTX and Alameda, alleging that both entities committed fraud and made misrepresentations by portraying FTX as the digital commodity asset platform.

Sam Bankman-Fried, the founder of both companies, was sentenced to 25 years in prison and ordered to forfeit $11 billion in March. Earlier, he was convicted on seven counts, including fraud, conspiracy, and money laundering.

(Omkar Godbole contributed reporting.)

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