The trust behind reimbursing creditors with ties to defunct cryptocurrency exchange FTX announced that its next distribution of funds would start on July 31.
In a Friday notice, the FTX Recovery Trust and crypto exchange said that they would distribute about $900 million to claimants in the recovery plan’s “convenience and non-convenience classes.” Eligible creditors can receive funds through their BitGo, Kraken or Payoneer accounts within one to three business days starting from July 31.
The distribution will mark the fifth round of attempts of repaying FTX’s creditors. Convenience claims under $50,000 will receive a 120% reimbursement under FTX’s recovery plan, while others will receive between a 103-105% distribution.
Source: Sunil Kavuri
Following a March distribution of $2.2 billion, the trust has paid out about $10 billion since the company filed for bankruptcy in November 2022 amid a crypto market downturn that resulted in many exchanges filing for Chapter 11 protection. Former FTX executives including CEO Sam “SBF” Bankman-Fried and Ryan Salame, the co-CEO of FTX’s Bahamian affiliate, are still in federal prison as part of their role in the exchange’s misuse of customer funds.
Related: FTX estate misses out on $3B Cursor stake value after $200K sale in 2023
In May, the law firm Fenwick & West, which advised FTX before its collapse, agreed to pay $54 million to settle a class action lawsuit filed by former users. A group of 20 FTX users sued the law firm for $525 million just days earlier.
Presidential pardon looking less likely for former FTX CEO
Bankman-Fried, who pleaded not guilty to criminal charges related to his role in the misuse of customer funds at FTX, was found guilty and sentenced to 25 years in prison in 2024. His appeal for his conviction and sentence was denied last month after a federal court upheld the New York court ruling.
However, even before the appellate court ruling became public, Bankman-Fried applied for a pardon from Donald Trump, something the US president said in a January interview that he did not plan on granting. Despite the statement from Trump, this week the US Senate unanimously adopted a resolution opposing clemency for the former FTX CEO.
The measure can’t stop Trump from issuing a pardon but reflected bipartisan opposition to the president granting clemency to a convicted felon. Many lawmakers have criticized the president issuing a pardon for former Binance CEO Changpeng Zhao after a UAE entity invested $2 billion into the crypto exchange using a stablecoin issued by the Trump family business, World Liberty Financial.
Magazine: Strategy became a symbol of the dot-com crash: Could history repeat?
