FTX Trust Distributes $900 Million to Creditors in Fifth Payout Round
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- FTX's Recovery Trust initiated its fifth distribution, sending $900 million to creditors, bringing the total payout to an estimated $11 billion.
- This follows the exchange's 2022 collapse and ongoing legal actions against its former executives.
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The FTX Recovery Trust has begun its fifth distribution of funds to creditors following the cryptocurrency exchange's collapse in 2022 due to misuse of user funds, leading to criminal charges against executives.
The trust behind reimbursing creditors from defunct cryptocurrency exchange FTX has begun its fifth distribution of funds, sending $900 million to affected users.
In a Friday X post, former FTX user Sunil Kavuri reported that he had received funds distributed from the FTX Recovery Trust and crypto exchange through Kraken. Kavuri said he had received a notice last week that FTX had sent the funds to Kraken, which released them as scheduled on Friday as part of the distribution plan for exchanges including BitGo and Payoneer.
The distribution will mark the fifth round of attempts of repaying FTX’s creditors since the exchange filed for bankruptcy in 2022. Following this most recent distribution, FTX’s trust is estimated to have paid out about $11 billion to affected users who lost access to their funds for years.
FTX was one of the largest and most prominent exchanges to collapse in 2022 amid a market downturn, resulting in criminal charges being filed against executives due to the misuses of user funds. Former CEO Sam “SBF” Bankman-Fried and Ryan Salame, the co-CEO of FTX’s Bahamian affiliate, were still in federal prison as of July, while former Alameda Research CEO Caroline Ellison was released in January after serving more than a year.
Last week, a bankruptcy court judge ruled that the FTX trust couldn’t pursue damages against crypto exchange Binance and its former CEO Changpeng Zhao. However, Chief Judge Karen B. Owens did not dismiss the trust’s claim in seeking to claw back $1.76 billion from Binance used to repurchase its stake in FTX that it alleged was due in part to “Bankman-Fried’s pervasive and now well-known malfeasance.”
Offene Fragen
- When will the next distribution occur?
- What is the total percentage of funds recovered by creditors?
- What will be the final outcome of the $1.76 billion claim against Binance?
