The FTX Recovery Trust, responsible for managing the distribution of funds from the insolvent crypto exchange, has disclosed a third tranche of distributions to creditors amounting to approximately $1.6 billion.
As per a Friday announcement, the distribution is set for September 30, and creditors can expect the funds in their accounts within three business days post-payment date.
This third distribution comprises a 6% payout for Dotcom Customer claims, a 40% distribution 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 the September distribution.
FTX’s Recovery Trust initiated creditor reimbursements in February with a $1.2 billion payout, followed by a $5 billion distribution in May. The trust currently holds up to $16.5 billion in assets designated for its creditors and former customers.
The downfall of the FTX exchange in 2022 reverberated throughout the crypto industry and exacerbated the bear market that had started at the year’s beginning. Traders and investors are closely watching the FTX Recovery Trust’s reimbursements for potential effects on the 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, the founder and erstwhile CEO of FTX, was convicted on seven charges, 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 rendered the sentence, described the exchange’s collapse and SBF’s involvement as a “serious” crime deserving of decades in prison.
Bankman-Fried’s lawyers plan to appeal his conviction in November, contending that he did not receive a fair trial due to presumed guilt from the start.
The legal team also claimed that FTX was never insolvent and consistently had the necessary funds to fulfill its obligations to customers and creditors.
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