FTX Trust Dumps Another $900M into Creditor Pockets

FTX's trust has begun its fifth distribution of funds, sending $900 million to affected users. The distribution marks another attempt at repaying FTX's creditors since the exchange filed for bankruptcy in 2022. Following this most recent distribution, FTX's trust is estimated to have paid out about $11 billion to affected users who lost access to their funds for years.

Former FTX user Sunil Kavuri reported that he had received funds distributed from the FTX Recovery Trust and crypto exchange Kraken. He stated that he had received a notice last week that FTX had sent the funds to Kraken, which released them as scheduled on Friday as part of the distribution plan for exchanges including BitGo and Payoneer.

FTX was one of the largest and most prominent exchanges to collapse in 2022 amid a market downturn, resulting in criminal charges being filed against executives due to the misuses of user funds. Former CEO Sam 'SBF' Bankman-Fried and Ryan Salame, the co-CEO of FTX's Bahamian affiliate, were still in federal prison as of July.