FTX recovery trust to launch fifth payout round amounting to $900 Million on July 31

The trust overseeing repayments to victims of the collapsed crypto exchange FTX has confirmed that its next disbursement will begin on July 31, sending close to $900 million to eligible claimants.

Funds will land in creditors’ BitGo, Kraken, or Payoneer accounts within one to three business days of the start date. To qualify, claimants must belong to the plan’s convenience or non-convenience categories and must have finished all required verification steps by June 16.

Payout size depends on claim category. Smaller claims under $50,000 fall into the convenience class and will be repaid at 120% of their original value. Larger, non-convenience claims will see recoveries between 103% and 105%. Traders who used FTX’s international or US platforms qualify for an added 9% under a special tier, bringing their total recovery to about 105%.

This marks the trust’s fifth distribution overall. Following a $2.2 billion payout in March, cumulative repayments now total roughly $10 billion since FTX entered bankruptcy in November 2022. Estate administrators have generally aimed to return between 118% and 142% of creditors’ 2022 holdings, though the process has drawn criticism for paying out cash equivalents rather than restoring actual crypto assets.

Legal consequences from FTX’s downfall continue elsewhere. Law firm Fenwick & West, once outside counsel to FTX US, agreed in May to a $54 million settlement over claims it enabled founder Sam Bankman-Fried’s fraud, days after a $525 million lawsuit was filed against it by former users.

Bankman-Fried, sentenced to 25 years in 2024, recently lost his appeal. He has since sought a presidential pardon, which Trump said in January he wouldn’t grant. This week, the Senate unanimously passed a symbolic resolution opposing clemency for him.

Meanwhile, a New York judge dismissed a defense argument from Ryan Salame’s wife in one of the final FTX-linked criminal cases.

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