The trust behind paying off creditors with ties to defunct cryptocurrency exchange FTX has announced that its next distribution of funds will begin on July 31.
In a Friday notice, the FTX Recovery Trust and crypto exchange said that they would distribute approximately $900 million to applicants in the “convenience and non-convenience classes” of the stimulus plan. Eligible creditors can receive funds through their BitGo, Kraken, or Payoneer accounts within one to three business days starting July 31.
This distribution will mark the fifth round of attempts to repay FTX creditors. Convenience claims below $50,000 will receive a 120% refund under FTX’s recovery plan, while others will receive a distribution between 103 and 105%.
Source: Sunil Kavuri
After a $2.2 billion distribution in March, the trust has paid out about $10 billion since the company filed for bankruptcy in November 2022, amid a downturn in the crypto market that has led many exchanges to file for Chapter 11 protection. Former FTX executives, including CEO Sam “SBF” Bankman-Fried and Ryan Salame, co-CEO of FTX’s Bahamian subsidiary, remain in federal prison due to their role in the exchange’s misuse of customer funds.
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In May, law firm Fenwick & West, which advised FTX before its bankruptcy, agreed to pay $54 million to settle a class-action lawsuit filed by former users. Days earlier, a group of 20 FTX users sued the law firm for $525 million.
Presidential pardon seems less likely for former FTX CEO
Bankman-Fried, who pleaded not guilty to criminal charges related to his role in misusing customer funds at FTX, was convicted and sentenced to 25 years in prison in 2024. His appeal for his conviction and sentence was rejected last month after a federal court upheld the New York court’s ruling.
However, even before the appeals court’s decision was made public, Bankman-Fried requested a pardon from Donald Trump, which the US president did. said in a January interview he hadn’t planned to give. Despite Trump’s statement, the US Senate this week unanimously passed a resolution opposing the pardon of the former FTX CEO.
The measure cannot prevent Trump from issuing a pardon, but reflects bipartisan opposition to the president granting clemency to a convicted felon. Many lawmakers criticized the president for pardoning former Binance CEO Changpeng Zhao after a UAE entity invested $2 billion in the crypto exchange using a stablecoin issued by the Trump family business, World Liberty Financial.
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