FTX has committed to a bankruptcy liquidation that will repay customers whose deposits were locked during its late 2022 collapse.

A United States court has ordered bankrupt cryptocurrency exchange FTX to pay $12.7bn in relief to its customers, the Commodity Futures Trading Commission has said.

FTX drew customers in with “an illusion that it was a safe and secure place to access crypto markets,” then misappropriated their customer deposits to make its own risky investments, CFTC Chairman Rostin Behnam said in a statement on Thursday.

The repayment order implements a settlement between the CFTC and the bankrupt crypto exchange, which has committed to a bankruptcy liquidation that will repay customers whose deposits were locked during its late 2022 collapse.

FTX has said that its customers will receive 100 percent recovery on their claims against the company, based on the value of their accounts at the time it filed for bankruptcy.

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