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FTX to pay $12.7B to victims of Sam Bankman-Fried’s massive scheme
news.movim.eu / ArsTechnica · Thursday, 8 August - 21:21
FTX, the bankrupt cryptocurrency exchange formerly helmed by fraudster Sam Bankman-Fried , has agreed to pay $12.7 billion to customers blindsided by Bankman-Fried's deceptions covering up FTX's flagrant misuse of customer funds.
In an order yesterday, US District Judge P. Kevin Castel said that FTX must pay $8.7 billion in restitution to victims of Bankman-Fried's fraudulent scheme, as well as disgorge another $4 billion in "gains received in connection with the violations" to further compensate customers who suffered significant losses.
According to Ian McGinley , the division of enforcement director for the Commodity Futures Trading Commission (CFTC), "this multi-billion-dollar recovery for victims" is "the largest such recovery in CFTC history." And the CFTC "achieved it with remarkable speed," McGinley boasted.