FTX to Distribute $900 Million to Creditors in Fifth Repayment Round

The FTX Recovery Trust announced it will begin distributing approximately $900 million to creditors starting July 31, marking the fifth round of repayments since the exchange’s collapse. Eligible claimants under the “convenience and non-convenience” classes will receive funds through their BitGo, Kraken or Payoneer accounts within one to three business days of the distribution start date.

Reimbursement Rates Vary by Claim Size

Under the recovery plan, creditors with convenience claims under $50,000 will receive 120% reimbursement, while other claimants will receive between 103% and 105% of their original claims. This latest round follows a $2.2 billion distribution in March, bringing total payouts to roughly $10 billion since FTX filed for bankruptcy in November 2022 during a broader downturn that pushed several crypto exchanges into Chapter 11 proceedings.

Former Executives Remain in Prison Amid Legal Developments

Former FTX CEO Sam Bankman-Fried and former Bahamian affiliate co-CEO Ryan Salame remain in federal prison for their roles in the misuse of customer funds. Bankman-Fried was sentenced to 25 years in 2024, and his appeal was denied last month after a federal court upheld the original ruling. Separately, a law firm that had advised FTX before its collapse agreed in May to pay $54 million to settle a class action lawsuit brought by former users.

Pardon Prospects Appear to Be Fading

Despite Bankman-Fried applying for a presidential pardon, prospects appear increasingly unlikely. President Trump previously indicated he did not intend to grant clemency, and the U.S. Senate this week unanimously passed a resolution opposing any pardon for the former executive. While the resolution carries no legal power to block a pardon, it signals strong bipartisan opposition, especially amid criticism over a separate pardon granted to another prominent crypto exchange founder following a large investment tied to a Trump family business.