The FTX Recovery Trust announced it will begin distributing approximately $900 million to eligible creditors starting July 31, marking the fifth round of repayments since the exchange’s collapse.
This payout covers both convenience and non-convenience claim classes as per the approved recovery plan. Creditors opting for BitGo, Kraken, or Payoneer as payment methods should expect funds within one to three business days from the distribution start.
Convenience claimants with claims under $50,000 will receive 120% of their approved amounts, while other creditors can anticipate returns ranging from 103% to 105%.
Progress Amid Continuing Legal Battles
Since FTX's bankruptcy filing in November 2022, the Recovery Trust has disbursed close to $10 billion to users. The previous $2.2 billion distribution took place in March, paving the way for this latest installment.
Legal challenges tied to FTX continue. Earlier this year, law firm Fenwick & West settled for $54 million in a class-action case. Meanwhile, another lawsuit demanding $525 million has been filed by 20 former clients.
Former FTX executives convicted of fraud including Sam Bankman-Fried and Ryan Salame remain incarcerated. In 2024, Bankman-Fried received a 25-year sentence related to the exchange’s downfall. His appeals were recently denied by a federal court.
Requests for a pardon have faced strong opposition. The U.S. Senate passed a resolution this week opposing clemency for Bankman-Fried, reflecting deep bipartisan resistance to any executive intervention.
This is an informational update and not financial advice.
