FTX Recovery Trust to Distribute $1.6 Billion to Creditors
- The FTX Recovery Trust will distribute $1.6 billion to creditors at the end of this month.
- This marks the third phase of distributions from the FTX estate’s recovery plan.
- Distributions range between 78% and 120% of the value of clients’ FTX holdings when the exchange collapsed in November 2022.
- Payments will be processed through crypto exchanges Bitgo and Kraken, and payments platform Payoneer.
- FTX’s former CEO, Sam Bankman-Fried, is serving a jail sentence for fraud related to the exchange’s collapse.
The FTX Recovery Trust is set to repay $1.6 billion in its third distribution to creditors by September’s end, marking significant progress in making clients whole after the exchange’s collapse due to criminal mismanagement by its former CEO and associates.
This distribution represents a substantial effort by the recovery trust, with payments amounting up to more than full value for some creditors’ original holdings before FTX went bankrupt in late-2022.(Source)
