FTX has scheduled its fifth creditor distribution for July 31, preparing to return nearly $900 million as founder Sam Bankman-Fried’s efforts to secure clemency face political resistance.
Summary
- FTX will begin its fifth creditor distribution, worth nearly $900 million, on July 31.
- Preferred shareholders will receive another $18 million, lifting total trust payments to $95 million.
- SBF’s pardon campaign faces resistance as criminal cases linked to FTX continue.
According to an FTX press release, the bankrupt exchange will distribute funds to creditors with approved claims in the Convenience and Non-Convenience Classes under its Chapter 11 reorganization plan. Claimants must have completed all pre-distribution requirements by the June 16 record date to qualify.
Eligible creditors will receive their payments through one of FTX’s approved distribution providers. The company has named Kraken, Payoneer, and crypto custodian BitGo among the services handling the transfers.
FTX described the July payment as its fifth distribution since the repayment process began. The company said the round will return almost $900 million to creditors, though it did not provide a breakdown of how much each claim class will receive.
Future record and payment dates will be announced later, according to the exchange. The bankruptcy proceedings also remain active, with the court scheduled to hold omnibus hearings on July 23 and Aug. 16.
Preferred shareholders will receive another $18 million
Alongside the creditor distribution, FTX will issue a second payment to eligible Preferred Equity Holders on July 31. The company said eligibility for this group was also determined using the June 16 record date.
Funds will come from the Preferred Shareholder Remission Fund Trust, which was established to compensate qualifying shareholders. FTX said the upcoming payment will distribute $18 million and raise total payments from the trust to $95 million.
Individual shareholders will receive their funds through Kraken, while BitGo will process payments for institutional recipients, according to the exchange. FTX added that it began contacting eligible Preferred Equity Holders in January to help them complete the required steps.
The dual distribution continues the financial unwind of FTX, which filed for bankruptcy in 2022 after a liquidity crisis exposed a multibillion-dollar shortfall. Under the court-approved plan, distributions depend on claim approval, record-date eligibility and completion of verification requirements.
SBF’s clemency campaign faces political resistance
While creditors await the latest payment, Bankman-Fried has continued seeking a presidential pardon for his criminal conviction. The former FTX chief is serving a 25-year prison sentence after a federal jury found him guilty of fraud and conspiracy charges connected to the exchange’s collapse.
Notably, the U.S. Senate recently rejected a clemency effort involving Bankman-Fried. President Donald Trump has also indicated that he does not plan to pardon the former executive, weakening the prospects of an early release through presidential action.
Criminal cases tied to FTX have continued even as the bankruptcy estate returns money to creditors. Last month, crypto.news reported that a federal judge rejected Michelle Bond’s attempt to dismiss four campaign finance-related charges and scheduled her trial for Nov. 9.
In an order filed in the U.S. District Court for the Southern District of New York, Judge George Daniels rejected Bond’s argument that prosecutors had promised not to charge her if her husband, former FTX executive Ryan Salame, pleaded guilty. Bond’s prosecution was one of the final criminal cases linked to FTX after several former executives faced charges following the exchange’s failure.
Be the first to comment