Ex-FTX users report funds being released in $900M distribution round
FTX’s Recovery Trust has started its fifth creditor payout, distributing $900 million to affected users through providers including Kraken, BitGo, and Payoneer. A former FTX user said funds arrived after prior notice that Kraken would release them on schedule. This round brings total repayments to about $11 billion since FTX filed for bankruptcy in 2022. FTX collapsed during the 2022 crypto downturn after executives were accused of misusing customer funds. Former CEO Sam Bankman-Fried and former FTX Bahamian co-CEO Ryan Salame remained in federal prison as of July, while former Alameda Research CEO Caroline Ellison was released in January. A bankruptcy judge recently blocked the trust from pursuing damages against Binance and Changpeng Zhao, but left open the trust’s $1.76 billion clawback claim tied to Binance’s FTX stake repurchase.
