FTX Trust Releases $900M in Fifth Distribution Round
FTX's trust has begun its fifth distribution of funds to affected users, releasing $900 million as part of a broader effort to repay creditors. The latest payout brings the total amount paid out by FTX's trust to approximately $11 billion since the exchange filed for bankruptcy in 2022.
Sunil Kavuri, a former FTX user, reported receiving funds distributed through Kraken after FTX sent them as part of its distribution plan with other exchanges like BitGo and Payoneer. This marks another step towards repaying users who lost access to their funds following the collapse of one of the largest crypto exchanges in 2022.
The bankruptcy court judge has not dismissed claims against Binance, which allegedly used $1.76 billion from FTX to repurchase its stake in the exchange. The trust is seeking to claw back these funds, citing 'malfeasance' by former CEO Sam Bankman-Fried and his team.