The trust responsible for repaying creditors linked to the now-defunct cryptocurrency exchange FTX announced that the next distribution of funds will begin on July 31.
In Friday’s announcement, FTX Recovery Trust and the cryptocurrency exchange he said that they would give about $900 million to plaintiffs in the “comfort and non-comfort classes” of the recovery plan. Eligible creditors can receive funds via their BitGo, Kraken or Payoneer accounts within one to three business days, starting July 31.
The payout will mark the fifth round of attempts to repay FTX’s creditors. Convenience claims under $50,000 will receive a 120% refund under the FTX Recovery Plan, while other claims will receive a distribution of 103 to 105%.
Source: Sunil Kavuri
Following a $2.2 billion distribution in March, the trust has paid out approximately $10 billion since the company filed for bankruptcy in November 2022 amid a cryptocurrency market downturn that resulted in many exchanges filing for Chapter 11 protection. Former FTX executives, including CEO Sam “SBF” Bankman-Fried and Ryan Salame, co-CEO of FTX’s Bahamian subsidiary, remain in federal prison in connection with its role in the exchange’s misuse of customer funds.
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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 few days earlier, a group of 20 FTX users sued the law firm for $525 million.
A presidential pardon seems less likely for FTX’s former CEO
Bankman-Fried, who pleaded not guilty to criminal charges related to his role in the misappropriation of client funds at FTX, was convicted and sentenced in 2024 to 25 years in prison. His appeal of his conviction and sentence was rejected last month after a federal court upheld a New York court ruling.
However, even before the appeals court’s judgment was made public, Bankman-Fried asked Donald Trump for a pardon, which the US president he said in a January interview that he had not planned to give. Despite Trump’s statement, this week the U.S. Senate unanimously passed a resolution opposing a pardon for FTX’s former CEO.
The measure cannot stop Trump from granting clemency, but it reflects bipartisan opposition to the president pardoning a convicted criminal. Many lawmakers criticized the president, who pardoned former Binance CEO Changpeng Zhao after a United Arab Emirates entity invested $2 billion in the cryptocurrency exchange using a stablecoin issued by the Trump family company, World Liberty Financial.
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