FTX will return nearly $900M to creditors on July 31 as SBF's pardon hopes dim. Trump has said he does not plan to grant clemency. The exchange also plans an $18M shareholder payout.
Alpha Score of 42 reflects weak overall profile with weak momentum, poor value, weak quality, moderate sentiment.
FTX has set July 31 for its fifth creditor distribution, planning to return nearly $900 million as founder Sam Bankman-Fried's clemency campaign stalls in Washington.
Claimants with approved claims in the Convenience and Non-Convenience Classes under FTX's Chapter 11 reorganization plan must meet a June 16 record date to qualify, the exchange said in a press release. Kraken, Payoneer and BitGo will handle the transfers.
FTX described the July payment as the fifth round since repayments began. It did not break down how much each claim class will receive.
Future record and payment dates will be announced later. The bankruptcy court has scheduled omnibus hearings for July 23 and Aug. 16.
Alongside the creditor distribution, FTX will issue a second payment to eligible Preferred Equity Holders on July 31. The $18 million distribution will bring total payouts from the Preferred Shareholder Remission Fund Trust to $95 million. Individual shareholders will receive funds through Kraken; BitGo will process institutional payments, the exchange said. FTX said it began contacting eligible holders in January to help them complete the required steps.
The dual distribution continues the financial unwind of FTX, which filed for bankruptcy in 2022 after a liquidity crisis exposed a multibillion-dollar shortfall.
While creditors await the latest payment, Bankman-Fried's legal team has continued pursuing a presidential pardon. The former FTX chief is serving a 25-year prison sentence after a federal jury convicted him on fraud and conspiracy charges connected to the exchange's collapse.
The U.S. Senate recently rejected a clemency effort involving Bankman-Fried. President Donald Trump has said he does not plan to pardon the former executive, further dimming the prospects of an early release.
Criminal cases tied to FTX continue even as the bankruptcy estate returns money to creditors. Last month, a federal judge rejected Michelle Bond's attempt to dismiss four campaign finance-related charges and scheduled her trial for Nov. 9. Bond is the partner of former FTX executive Ryan Salame, who pleaded guilty in the case.
Judge George Daniels, in an order filed in the U.S. District Court for the Southern District of New York, rejected Bond's argument that prosecutors had promised not to charge her in exchange for Salame's cooperation.
The SO stock page carries an AlphaScore of 47, though the Southern Company has no direct exposure to the FTX estate or its creditor distributions.
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