WASHINGTON (Reuters) -- A federal court in New York has ordered MF Global Holdings Ltd to pay $1.2 billion in restitution and a $100 million penalty over charges it misused customers funds and committed related supervisory violations, the U.S. Commodity Futures Trading Commission said on Wednesday.

The CFTC said its litigation will continue against former MF Global Chief Executive Jon Corzine and former Assistant Treasurer Edith O'Brien. Corzine, a Democrat, is a former U.S. senator for and governor of New Jersey.

MF Global went under in 2011 at the height of the European debt crisis when markets became spooked by the firm's $6.3 billion bet on European government bonds. U.S. authorities have accused the firm of using customer money to cover liquidity shortfalls.

(Reporting by Karey Van Hall; Editing by David Gregorio)