Alameda Research and the now-bankrupt FTX are obligated to pay $4 billion in disgorgement and $8.7 billion in restitution.

The decision follows the 25-year jail sentence given to FTX founder Sam Bankman Fried in March and the seven-and-a-half-year sentence given to another FTX executive, Ryan Salame, in May.

The Commodity Exchange Act (CEA) and CFTC laws were also found to have been broken by FTX. According to the order, FTX is not permitted to trade, keep, or receive money for the purchase or sale of cryptocurrencies. Additionally, FTX demands that Alameda and FTX collaborate on pending CFTC lawsuit.

The head of the CFTC, Rostin Behnam, stated: "FTX employed antiquated strategies to fabricate a false impression that it was a secure location to access cryptocurrency markets. However, there was a lack of fundamental regulatory instruments including as supervision, customer safeguards, and governance, which are meant to detect wrongdoing and eventually avert collapse.

As with several previous CFTC crypto decisions involving big firms like BitMEX, Tether, and Binance, this settlement with FTX is in line with my long-standing enforcement pledges as Chairman. However, this is only the tip of the iceberg, as I have been saying for years.Without these fundamental instruments of solid regulation, businesses would continue to operate in the shadows, honing their dishonest tactics and deceiving clients in the absence of laws pertaining to digital assets to address regulatory gaps."

"Not only is this multi-billion dollar recovery for victims the largest such recovery in CFTC history, we achieved it with remarkable speed," said Ian McGinley, director of the enforcement division of the CFTC. After FTX's major scam fell 21 months ago, the CFTC looked into it, filed a complaint, and succeeded in getting victims compensation for their losses—something that many at the time believed was unthinkable. I'd want to thank our staff in Chicago for their unwavering work on behalf of the victims of FTX.