United States of America: Issued court ruling in CFTC lawsuit against FTX Trading for violating Commodity Exchange Act and CFTC regulations

On 8 August 2024, the US District Court for the Southern District of New York issued a consent order of permanent injunction against FTX Trading Ltd. and Alameda Research LLC, collectively known as FTX, for fraud and misappropriation. The court ordered FTX to pay USD 12.7 billion in monetary relief, comprising USD 8.7 billion in restitution and USD 4 billion in disgorgement, to compensate victims of FTX's fraudulent scheme. The ruling follows the Commodity Futures Trading Commission's (CFTC) complaint, alleging that FTX misappropriated investments and commingled customer funds. The order also imposes trading and registration prohibitions on FTX and Alameda, alongside requiring their cooperation with the CFTC in ongoing litigation.