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The former cryptocurrency exchange giant announced yesterday that it will begin its fifth creditor distribution at the end of the month, pushing the total announced repayments beyond $10 billion almost four years after it went bust.<\/p>\n
The next batch of repayments will be for $900 million, which works in alignment with the company’s Chapter 11 reorganization plan.<\/p>\n
The firm’s press release outlined<\/a> July 31 as the start date, after which eligible creditors are expected to receive their funds via BitGo, Kraken, or Payoneer within 3 business days. It’s worth noting that this repayment applies to creditors holding allowed claims in FTX’s Convenience and Non-Convenience Classes who had completed the required procedures by June 16.<\/p>\n The size of the actual payment will depend on the creditor class. Users of the global and the US exchanges (ftx.com and FTX US) will receive an additional 9% under Class 5a, taking their cumulative recovery to 105% of the value of their approved claims.<\/p>\n General unsecured creditors and holders of crypto loan claims will each receive an incremental 3%, and their total is expected to reach 103%. Convenience-class creditors, generally representing smaller customer claims, will get a cumulative 120% of their approved claims after the latest repayment.<\/p>\n The failed exchange also plans to distribute $18 million to eligible preferred shareholders on July 31, bringing the total payments from the separate Preferred Shareholder Remission Fund Trust to $95 million.<\/p>\n These repayment figures do not necessarily mean that customers have been made whole in crypto terms. Claims were considered in US dollar terms on crypto prices around FTX’s bankruptcy in November 2022, before the major price rallies for almost all involved assets.<\/p>\n Consequently, receiving 105% or 120% of its initial claims in USD may still be significantly less than the present-day value of the crypto assets held on the platform at the time. For instance, recall that BTC traded\u00a0around $20,000 when\u00a0FTX collapsed<\/a>, and despite its correction since the October 2025 ATH, it’s still over 200% higher.<\/p>\n FTX’s former CEO and the person considered the main culprit of its rapid decline, Sam Bankman-Fried, was convicted in 2023 on seven counts of fraud and conspiracy following the misallocation of over $8 billion worth of customer funds.<\/p>\n He remains in prison to this day but tried to lobby for clemency, especially since US President Donald Trump issued pardons to Changpeng Zhao and Arthur Hayes. However, in a unanimous vote earlier this week, the Senate ruled<\/a> that “under no circumstances should Samuel Bankman-Fried receive executive clemency, including a pardon, or commutation.”<\/p>\n The post FTX to Pay Creditors Another $900 Million: Here\u2019s Who Gets the Money<\/a> appeared first on CryptoPotato<\/a>.<\/p>\n\nSBF Pardon Rejected<\/h2>\n
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