What to know:
- FTX Recovery Trust will begin distributing $900 million to eligible creditors starting July 31, marking its fifth repayment round.
- Eligible claimants using BitGo, Kraken, or Payoneer can expect payouts within one to three business days after distributions begin.
- The latest payout will bring the FTX Recovery Trust’s total distributions to $10 billion, with eligible convenience claimants receiving up to 120% of approved claims.
The FTX Recovery Trust has revealed that the next tranche of repayment for the FTX users will start from July 31st, with an expected disbursement of $900 million to the eligible debtors.
According to the latest announcement, claimants in both the convenience and non-convenience classes will receive funds in accordance with FTX’s recovery plan. Creditors who choose either BitGo, Kraken, or Payoneer as the payment method can expect to receive the money one to three business days from the beginning of distribution.
Fifth Round of FTX Repayments Begins
It is the fifth distribution after the bankruptcy filing by FTX, which followed its failure in November 2022.
Under the plan, which has now been approved, convenience claimants with less than $50,000 in approved claims will receive 120% of those claims. Other claimants are expected to get 103% to 105% of their claims.
The latest distribution was from a $2.2 billion payout that occurred in March. After including the next payment, the total amount distributed by the FTX Recovery Trust since the bankruptcy proceedings began is $10 billion.
With repayments ongoing, however, legal cases related to the defunct exchange are also proceeding.
Back in January of this year, the law firm Fenwick & West, previously associated with FTX, settled a class-action case filed against it by former clients by paying $54 million. This occurred just before another 20 former clients of FTX filed another lawsuit against them, for a total of $525 million.
Other FTX executives who were found guilty of fraud are also currently behind bars for their involvement in the abuse of client funds. The former CEO of FTX, Sam Bankman-Fried (SBF), and former co-CEO of FTX Digital Markets, Ryan Salame, are among them.
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Bankman-Fried Faces More Opposition to Pardon Request
In 2024, Bankman-Fried received a sentence of 25 years in jail for his guilty plea in the crimes associated with the bankruptcy of FTX. The appeals filed by him were rejected last month when the same decision was affirmed by a federal court of appeals.
Prior to this rejection of his case, Bankman-Fried had been reported to have sought a pardon from Donald Trump. But according to an interview held in January, Trump is not considering any pardon for Bankman-Fried.
During the current week, the U.S. Senate adopted a resolution rejecting any idea of a pardon being issued to the former CEO of FTX. The resolution, although not binding for the president, illustrates an unprecedented level of bipartisan disagreement on issuing clemency in the matter.
The discussion takes place against the backdrop of some members of Congress raising concerns about recent debates regarding presidential pardons to prominent crypto executives.
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