The judge overseeing the bankruptcy of former cryptocurrency exchange FTX has ordered the defunct business to pay its creditors a total of $12.70 billion U.S.
The order from a New York judge ends a 20-month-long battle by creditors to be made whole by FTX, which filed for Chapter 11 bankruptcy in November 2022.
Sam Bankman-Fried, who founded both FTX and its sister trading company Alameda Research, has been sentenced to 25 years in prison and ordered to forfeit $11 billion U.S. after being convicted on seven counts of fraud and money laundering.
The order to repay creditors more than $12 billion U.S. by U.S. District Judge Peter Castel also ends a lawsuit by the Commodities and Futures Trading Commission (CFTC) that had claimed FTX committed fraud and swindled investors out of billions of dollars.
Despite the collapse of FTX and criminal conviction of Sam Bankman-Fried, the bankruptcy trustee in the case has been able to recoup most of the money that was believed to have been lost by the crypto exchange.
As a result, the bankruptcy trustee has said that most of FTX’s creditors will get all of their money back once the case is settled.
