Crypto
Home›Crypto›Market Structure›FTX recovery trust begins fifth distribution, sending…
FTX recovery trust begins fifth distribution, sending $900M
The latest round is scheduled to reach users via crypto exchanges including Kraken, as the trust continues repaying creditors from losses tied to 2022.
Cointelegraph reports that former users of the defunct FTX exchange say distribution agents have started releasing funds in the latest round of reimbursements tied to their 2022 losses.
According to the report, the trust behind the payouts has begun its fifth distribution, sending $900 million to affected users. Former FTX user Sunil Kavuri said he received funds distributed from the FTX Recovery Trust and the exchange, with the funds sent to Kraken and released on schedule as part of the distribution plan that also covers exchanges including BitGo and Payoneer.
The distribution marks the fifth attempt to repay FTX’s creditors since the exchange filed for bankruptcy in 2022. After this round, the trust is estimated to have paid out about $11 billion to users who lost access to funds for years, the report said.
Cointelegraph also notes that FTX collapsed in 2022 during a market downturn, leading to criminal charges over the alleged misuse of customer funds. It adds that, as of July, former CEO Sam “SBF” Bankman-Fried and Ryan Salame remained in federal prison, while former Alameda Research CEO Caroline Ellison was released in January after serving more than a year. The report further states that last week a bankruptcy court judge ruled the trust could not pursue damages against Binance and its former CEO Changpeng Zhao, while not dismissing the trust’s effort to seek to claw back $1.76 billion from Binance.