Crypto▲ Bullish
FTX Trust Sends $900 Million to Creditors in Fifth Payout Round
FTX's recovery trust pushed out $900 million in its fifth creditor payout, bringing total distributions to $11 billion. A judge blocked damages claims against Binance but left a $1.76 billion clawback alive.
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FTX's recovery trust just pushed out another $900 million to creditors. That is the fifth round of distributions since the exchange's 2022 implosion, bringing the total paid out to roughly $11 billion.
Creditors have been waiting years for this money. The collapse wiped out access to funds for a massive number of users overnight, and the trust has been grinding through a multi-round reimbursement process ever since.
Former FTX user Sunil Kavuri said he got word of the release last week, with funds hitting his account on schedule. Kavuri received his money through Kraken, which is one of the exchanges handling disbursements. BitGo and Payoneer are also involved in the distribution pipeline.
On the legal side, things got murky. A judge recently ruled that the FTX trust cannot pursue damages against Binance and its former CEO Changpeng Zhao. That is a partial loss for the trust. The court did not shut everything down, though. The trust kept its right to go after $1.76 billion from Binance tied specifically to a stake repurchase linked to Sam Bankman-Fried's misconduct. The damages claim is dead, but the clawback claim is still alive.