FTX Trust Disburses Fifth $900M Batch, Totaling $11B in Creditor Repayments

Woofun AI reports that the FTX Recovery Trust has initiated its fifth distribution cycle, channeling $900 million to creditors through intermediaries including Kraken, BitGo, and Payoneer. Former user Sunil Kavuri confirmed receipt of funds on Friday, noting that the transfer followed a notice received last week regarding the scheduled release from the trust to these exchange partners.

This disbursement represents the fifth round of repayments since the exchange filed for bankruptcy in 2022.

Woofun AI data shows that cumulative payouts have now reached approximately $11 billion, addressing the losses incurred by users who were locked out of their accounts for years following the platform's implosion during the broader market downturn.

The financial restitution proceeds alongside the legal consequences for former executives. Sam "SBF" Bankman-Fried and Ryan Salame, co-CEO of FTX’s Bahamian affiliate, remained in federal prison as of July, while Caroline Ellison, former CEO of Alameda Research, was released in January after serving more than a year of her sentence.

Recent judicial developments have complicated further recovery efforts. Chief Judge Karen B. Owens ruled that the trust cannot pursue damages against Binance and its former CEO Changpeng Zhao.

However, the court did not dismiss the claim to claw back $1.76 billion from Binance, which was allegedly used to repurchase its stake in FTX due to "Bankman-Fried’s pervasive and now well-known malfeasance." This marks a critical juncture in the ongoing litigation surrounding the exchange's collapse.