FTX Trust Begins Fifth Round of Creditor Repayments, Releasing $900 Million

The trust overseeing reimbursements for former FTX users has started distributing its fifth round of payments, sending $900 million to creditors affected by the exchange’s 2022 collapse.

Users Confirm Fund Releases Through Kraken

Former FTX user Sunil Kavuri said on X that he received a notice last week confirming FTX had transferred funds to Kraken, which released them Friday as scheduled. The payments are part of a broader distribution plan involving multiple platforms, including BitGo and Payoneer, tasked with reimbursing former users.

Total Payouts Approach $11 Billion

With this latest round, the FTX Recovery Trust has now paid out an estimated $11 billion to creditors who lost access to their funds after the exchange’s bankruptcy filing. FTX’s collapse in 2022 remains one of the most significant failures in crypto history, leading to criminal charges against several executives over the misuse of customer funds. Former CEO Sam Bankman-Fried and former Bahamas affiliate co-CEO Ryan Salame remain in federal prison, while former Alameda Research CEO Caroline Ellison was released in January after serving more than a year.

Binance Faces Ongoing Legal Claim

Separately, a bankruptcy court judge ruled last week that the FTX trust cannot pursue damages against Binance or its former CEO Changpeng Zhao. However, the judge allowed the trust’s claim seeking to claw back $1.76 billion from Binance tied to its repurchase of an FTX stake to proceed, citing conduct linked to Bankman-Fried’s alleged wrongdoing.