Washington, D.C. – The Commodity Futures Trading Commission (CFTC) has ordered FTX Trading Ltd. to pay $12.7 billion in restitution to customers, marking the latest development in the aftermath of the cryptocurrency exchange’s spectacular collapse in November 2022.

The CFTC’s order, issued on [Date], details a series of charges against FTX and its former CEO, Sam Bankman-Fried, alleging that they engaged in “fraudulent, manipulative, and deceptive practices” that led to the exchange’s demise. These charges include misappropriation of customer funds, commingling of assets, and making false and misleading statements about the platform’s operations.

“FTX’s actions were a blatant disregard for the rules and regulations governing the financial markets, and they caused immense harm to its customers,” said [CFTC Chair Name], in a statement. “This order sends a strong message that we will hold those who violate the law accountable, and we will continue to work tirelessly to protect investors.”

The $12.7 billion figure represents the total amount of customer funds that FTX allegedly misappropriated, according to the CFTC. This includes both funds directly held by the exchange and funds held by FTX’s affiliated trading firm, Alameda Research.

The CFTC’s order also prohibits FTX from engaging in any future trading activity in the U.S. and requires the company to cooperate with the agency’s ongoing investigation.

This latest development comes as Bankman-Fried faces multiple criminal charges from the U.S. Department of Justice and the Securities and Exchange Commission (SEC), related to his role in FTX’s collapse. He has pleaded not guilty to all charges and is currently awaiting trial.

The CFTC’s order is significant as it represents the first major action taken against FTX in the U.S. since the collapse. It is likely to have a ripple effect on the wider cryptocurrency industry, raising further questions about the regulatory oversight of digital assets and the need for increased transparency and accountability.

The order also highlights the need for investors to be cautious when dealing with cryptocurrency exchanges and to thoroughly research the platform’s security and financial practices before entrusting them with their funds.