FTX recovery trust to pay $900M to creditors July 31

The FTX Recovery Trust will begin distributing about $900 million to creditors on July 31, the trust announced. Payments will be made to claimants in the recovery plan’s convenience class and non-convenience class. Eligible recipients will receive funds through BitGo, Kraken or Payoneer accounts, and the trust expects funds to arrive within one to three business days after distribution.

Under the recovery plan, convenience claims-claims under $50,000-are scheduled to receive a 120% reimbursement of their allowed amounts. Non-convenience claims above $50,000 are set to receive roughly 103% to 105% of their allowed amounts. This is the fifth distribution round since FTX filed for Chapter 11 in November 2022.

The trust made a $2.2 billion distribution in March. Since the bankruptcy filing, the trust has returned about $10 billion to creditors through asset sales and other recoveries. The trust and the estate continue processing claims and converting recovered assets into U.S. dollars and stablecoins for return to customers and creditors.

Former FTX CEO Sam Bankman‑Fried and former FTX Bahamas co‑CEO Ryan Salame are serving federal prison sentences related to the misuse of customer funds. Bankman‑Fried was convicted, sentenced to 25 years in prison, and a federal appeals court recently denied his challenge to the conviction and sentence. He has applied for executive clemency, and the U.S. Senate unanimously adopted a resolution opposing clemency; President Donald Trump previously indicated he did not plan to grant a pardon.

Advisers to FTX have faced separate legal actions. Law firm Fenwick & West agreed to pay $54 million to settle a class action brought by former users. A group of roughly 20 former customers filed a separate lawsuit seeking about $525 million against the firm.

The recovery trust will continue supervising asset sales, pursuing recoveries and processing claims ahead of additional distributions to creditors.