FTX Cuts Another Check: $900M Heads to Creditors July 31 💸

The FTX Recovery Trust will distribute approximately $900 million to creditors beginning July 31, marking the fifth repayment round under the defunct exchange's Chapter 11 Plan of Reorganization. Eligible holders of allowed claims in the Plan's Convenience and Non-Convenience Classes who completed pre-distribution requirements by the June 16 Record Date will receive funds through their selected distribution service provider: BitGo, Kraken or Payoneer, typically within one to three business days.

Under the recovery plan, convenience claims under $50,000 receive a 120% reimbursement, while other claimants receive between 103% and 105% distributions. The trust stated it will announce subsequent record and payment dates in due course. The $900 million payout follows a March distribution of $2.2 billion, bringing total repayments to roughly $10 billion since FTX filed for bankruptcy in November 2022.

The announcement comes as former FTX executives remain in federal prison. Co-founder and former CEO Sam "SBF" Bankman-Fried was sentenced to 25 years in 2024 after being found guilty on criminal charges tied to the misuse of customer funds; his appeal of both conviction and sentence was denied last month when a federal court upheld the New York ruling. Ryan Salame, co-CEO of FTX's Bahamian affiliate, also continues to serve time for his role in the exchange's collapse.

Separately, the law firm Fenwick & West, which advised FTX prior to its collapse, agreed in May to pay $54 million to settle a class-action lawsuit filed by former users. That settlement came shortly after a group of 20 FTX users sued the firm for $525 million.

Bankman-Fried's bid for clemency has also stalled. President Donald Trump said in a January interview that he did not plan to grant the former FTX CEO a pardon. This week, the US Senate unanimously adopted a resolution opposing clemency for Bankman-Fried. The measure cannot block a presidential pardon but reflected bipartisan opposition to the move, which followed criticism of Trump's pardoning of former Binance CEO Changpeng Zhao after a UAE entity invested $2 billion into Binance using a stablecoin issued by the Trump family business, World Liberty Financial.