FTX Ordered to Pay $127 Billion to Victims
Bankruptcy Court Finalizes Relief Package
Massive Restitution and Disgorgement to Be Distributed
In a landmark ruling, the Southern District Court of New York has ordered bankrupt cryptocurrency exchange FTX to pay $127 billion to its victims.
The order requires FTX to pay $87 billion in restitution to defrauded customers and $40 billion in disgorgement, which will be distributed to creditors.
The ruling is a major step forward in the ongoing legal proceedings surrounding the collapse of FTX, which has been labeled one of the biggest financial scandals in history.
FTX, once one of the largest cryptocurrency exchanges in the world, filed for bankruptcy in November 2022 after revelations of mismanagement and fraud.
The company's founder, Sam Bankman-Fried, has been charged with multiple counts of fraud and is currently awaiting trial.
The $127 billion relief package ordered by the court is expected to provide some measure of compensation to the victims of FTX's collapse.
However, the full extent of the damage caused by the company's actions is still being assessed.
The collapse of FTX has raised concerns about the regulation of the cryptocurrency industry and has led to calls for increased oversight.
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