The FTX Recovery Trust has announced another step in the long-running effort to repay creditors of the collapsed crypto exchange. According to the notice, the next distribution will begin on July 31 and will total about $900 million. This will be the fifth payment round tied to FTX’s recovery plan.
Eligible claimants in the plan’s convenience and non-convenience classes are expected to receive their funds through BitGo, Kraken or Payoneer. The trust said payments should arrive within one to three business days once the process starts. Under the recovery plan, convenience claims below $50,000 are set to receive 120% reimbursement, while other claims are expected to receive between 103% and 105%.
The latest payout follows a March distribution of $2.2 billion. The trust has now returned about $10 billion in total since FTX filed for bankruptcy in November 2022, after a downturn in the crypto market helped push several exchanges into Chapter 11 proceedings. The exchange’s collapse also led to criminal cases involving former executives, including Sam Bankman-Fried and Ryan Salame, both of whom are in federal prison.
Other fallout from the collapse continues to play out in court. In May, law firm Fenwick & West agreed to pay $54 million to settle a class action brought by former users, shortly after a separate group of 20 FTX users sued the firm for $525 million. Bankman-Fried, who was convicted and sentenced to 25 years in prison in 2024, had his appeal denied last month. He also sought a pardon from Donald Trump, although the president said earlier this year that he did not plan to grant one. This week, the US Senate unanimously passed a resolution opposing clemency for the former FTX chief.
Source: cointelegraph.com
