The FTX Recovery Trust, which manages the distribution of funds from the collapsed crypto exchange, announced a third distribution to creditors amounting to approximately $1.6 billion.
As per a Friday announcement, the distribution is set for Sept. 30, with funds reaching creditors’ accounts within three business days post-payment.
This third distribution encompasses a 6% payout for Dotcom Customer claims, 40% for US Customer Entitlement Claims, and 24% for General Unsecured Claims and Digital Asset Loan Claims. Convenience claims will receive a 120% reimbursement as part of September’s distribution.
FTX’s Recovery Trust began repaying creditors in February with a $1.2 billion distribution, followed by another $5 billion in May. The trust currently has up to $16.5 billion in assets designated for its creditors and former customers.
The collapse of the FTX exchange in 2022 created significant turbulence in the crypto market, exacerbating the bear market that started that year. Traders and investors remain attentive to the FTX Recovery Trust’s reimbursements for potential effects on crypto markets.
Related: Kroll faces class-action suit as FTX creditors allege daily scam emails
Former FTX CEO Sam Bankman-Fried to appeal his conviction in November
In November 2023, Sam “SBF” Bankman-Fried, founder and former 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 sentencing, deemed the collapse of the exchange and SBF’s involvement as a “serious” crime justifying decades in prison.
Bankman-Fried’s legal team plans to appeal his conviction in November, claiming he was presumed guilty from the beginning, thus denying him a fair trial.
The attorneys also contended that FTX was solvent and always possessed the resources to fulfill its obligations to customers and creditors.
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