FTX trust issues $900M in fifth distribution
The FTX Recovery Trust began its fifth distribution, sending $900 million to former users and bringing total payouts to about $11 billion since the exchange’s 2022 bankruptcy.
The FTX Recovery Trust began its fifth distribution on Friday, sending about $900 million to eligible creditors. Payments were routed through intermediaries including the crypto exchange Kraken.
A former customer, Sunil Kavuri, posted on X that he received notice the prior week that the trust had transferred funds to Kraken and that Kraken released them on Friday. The trust’s distribution plan names exchanges and custodial partners such as BitGo and Payoneer to handle disbursements to eligible claimants.
The distribution is part of an ongoing effort to return assets after FTX filed for bankruptcy in 2022. The trust says roughly $11 billion has been returned to claimants across multiple rounds of repayments.
FTX collapsed amid a market downturn and allegations that executives diverted customer assets. Former executives faced criminal charges; Sam Bankman-Fried and Ryan Salame remained in federal prison as of July, while Caroline Ellison was released in January after serving more than a year.
The trust’s recovery work is proceeding alongside litigation over responsibility for losses. Last week Chief Bankruptcy Judge Karen B. Owens ruled the trust could not pursue damages against Binance and its former CEO Changpeng Zhao, but left intact the trust’s $1.76 billion clawback claim over funds Binance used to repurchase its stake in FTX.
Future distributions will depend on additional asset recoveries, court approvals and coordination with exchanges and payment partners that transmit funds to individual claimants.
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