The FTX Recovery Trust, the entity overseeing the distribution of funds from the bankrupt crypto exchange, announced a third tranche of distributions to creditors, worth about $1.6 billion.
According to a Friday announcement, the distribution is scheduled for Sept. 30, and creditors should receive the funds in their accounts within three business days of the payment date.
The third distribution includes a 6% payout for Dotcom Customer claims, a 40% distribution for US Customer Entitlement Claims and a 24% distribution for General Unsecured Claims and Digital Asset Loan Claims. Convenience claims will receive a 120% reimbursement as part of September’s payout.
FTX’s Recovery Trust began reimbursing creditors in February with a $1.2 billion payout, and followed it up with a $5 billion distribution in May. The trust has up to $16.5 billion in assets earmarked for its creditors and former customers.
The collapse of the FTX exchange in 2022 sent shockwaves through the crypto world and deepened the crypto bear market that began at the start of that year. Traders and investors continue to monitor the FTX Recovery Trust’s reimbursements for possible impacts on the crypto markets.
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Former FTX CEO Sam Bankman-Fried to appeal his conviction in November
In November 2023, Sam “SBF” Bankman-Fried, the founder and former CEO of FTX, was found guilty on seven charges, including wire fraud, wire fraud conspiracy, securities fraud, commodities fraud conspiracy and money laundering conspiracy.
Bankman-Fried was sentenced to 25 years in prison in March 2024. Judge Lewis Kaplan, who oversaw the trial and sentenced Bankman-Fried, characterized the collapse of the exchange and SBF’s role in the implosion as a “serious” crime that warranted decades behind bars.
Attorneys for Bankman-Fried are set to appeal his conviction in November, arguing that the he did not receive a fair trial because he was assumed guilty at the outset.
The attorneys also argued that FTX was never insolvent and always had the funds to meet its obligations and reimburse customers and creditors.
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