# FTX & Alameda Ordered to Pay $12.7B to Customers

*Author: David Christopher*
*Published: Aug 8, 2024*
*Source: https://www.bankless.com/ftx-alameda-ordered-to-pay-12-7b-to-customers*

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A U.S. judge has ordered FTX and Alameda Research to pay $12.7B to creditors, ending a 20-month lawsuit from the Commodity Futures Trading Commission (CFTC).

### What's the scoop?
- **Bankruptcy Aftermath:** FTX filed for bankruptcy in late 2022, wiping out billions of dollars for investors. The CFTC lawsuit accused FTX and Alameda of fraud and misrepresentation.
- **No Civil Penalties: **While the order does [not include civil penalties](https://www.coindesk.com/policy/2024/08/08/ftx-alameda-ordered-to-pay-127b-to-creditors-by-us-judge/) — i.e., additional fines on FTX and Alameda Research as punishment — separate from the $12.7B ordered for creditor repayment, it does permanently restrict the trading activities of both companies. 
- **Sam Bankman-Fried's Sentence:** FTX founder Sam Bankman-Fried has been sentenced to 25 years in prison and ordered to forfeit $11B following his conviction on multiple counts of fraud, conspiracy, and money laundering.

### Bankless Take
While opinions remain mixed on whether this redistribution proves bullish, the majority tend to think so, viewing it as a $12.7B liquidity injection to the market. The bull case is that, if markets are in an uptrend when redistributions begin — likely in Q4 — then recipients may want to put their money back into the market. If not, then they most likely won’t. A key bit is that creditors are still deliberating over whether they want repayment to be made in cash or crypto, and have until [August 16 to decide](https://cointelegraph.com/news/cash-or-crypto-ftx-creditors-vote-how-recovered-funds-paid-back).

> BREAKING: FTX & ALAMEDA FINAL APPROVAL HANDED DOWN, ORDERED TO PAY BACK $12.7 BILLION TO FTX CREDITORS [pic.twitter.com/kf3QlJVIuB](https://t.co/kf3QlJVIuB)— Kyle Chassé (@kyle_chasse) [August 8, 2024](https://twitter.com/kyle_chasse/status/1821429125258658109?ref_src=twsrc%5Etfw)
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