The FTX Recovery Trust, which manages the distribution of funds from the bankrupt cryptocurrency exchange, has announced a third tranche of distributions to creditors, amounting to approximately $1.6 billion.
In a Friday announcement, it was revealed that the distribution is set for September 30, with creditors expected to see the funds in their accounts within three business days following the payment date.
This third distribution features a 6% payout for Dotcom Customer claims, a 40% distribution for US Customer Entitlement Claims, and a 24% distribution for General Unsecured Claims and Digital Asset Loan Claims. Convenience claims will receive a 120% reimbursement as part of the payout in September.
The FTX Recovery Trust started reimbursing creditors in February with an initial $1.2 billion payout, which was followed by a $5 billion distribution in May. The trust now has up to $16.5 billion in assets designated for its creditors and former customers.
The downfall of the FTX exchange in 2022 created significant turmoil in the cryptocurrency market and exacerbated the bear market that had begun early that year. Traders and investors are actively watching the FTX Recovery Trust’s reimbursements for their potential effects on the crypto landscape.
Related: Kroll faces class-action suit as FTX creditors claim daily scam emails
Former FTX CEO Sam Bankman-Fried to seek appeal for his conviction in November
In November 2023, Sam “SBF” Bankman-Fried, the founder and ex-CEO of FTX, was convicted on seven counts, including wire fraud, wire fraud conspiracy, securities fraud, commodities fraud conspiracy, and money laundering conspiracy.
Bankman-Fried received a 25-year prison sentence in March 2024. Judge Lewis Kaplan, who presided over the trial and imposed the sentence, described the collapse of the exchange and SBF’s involvement as a “serious” crime deserving of a lengthy prison term.
Bankman-Fried’s legal team plans to appeal his conviction in November, contending that he was not given a fair trial due to an assumption of guilt from the outset.
The defense also asserted that FTX was never insolvent and consistently possessed the resources to fulfill its obligations to customers and creditors.
Magazine: The $2,500 documentary about the FTX collapse on Amazon Prime… with assistance from his mom
