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The CFTC issued a statement saying that the Southern District Court of New York ordered FTX to pay $12.7 billion in financial relief to its customers and victims of fraud.
The statement said that it had determined that FTX had violated the Commodity Exchange Act (CEA) and CFTC regulations, and revealed that FTX and Alameda Research made material misrepresentations to their customers.
FTX Bankruptcy in 2022
Cryptocurrency exchange FTX went bankrupt in November 2022 and announced the resignation of the company’s CEO Sam Bankman-Fried.
Bankman-Fried was detained in the Bahamas last December after the U.S. filed criminal charges. Bankman-Fried was returned to the U.S. on December 21, 2022, and was released on $250 million bail pending a hearing.
Bankman-Fried has denied the “fraud” allegations against him, claiming he made mistakes but never intended to steal funds. Bankman-Fried’s bail was revoked on the grounds that he tried to influence witnesses, and the former CEO was sent to jail in Brooklyn.
Bankman-Fried was sentenced to 25 years in prison in March after being tried on fraud and money laundering charges.
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