![\"\"](\"https:\/\/nile1.com\/en\/wp-content\/uploads\/2026\/07\/screenshot-2026-07-17-at-33458-pm.png\" "\\"\\"")
<\/p>\nThe winding down of the FTX estate continues to progress as the trust responsible for distributing funds to creditors of the defunct cryptocurrency exchange announced its next major payout.<\/p>\n
In a Friday notice, the FTX Recovery Trust and crypto exchange announced that they will initiate a new distribution of approximately $900 million starting on July 31. This upcoming payout represents the fifth round of attempts to make creditors whole following the exchange’s catastrophic collapse in late 2022.<\/p>\n
Under the current recovery plan, the funds will be allocated to claimants categorized within the “convenience and non-convenience classes.” Creditors with convenience claims under $50,000 are slated to receive a 120% reimbursement of their petition-date values. Meanwhile, larger claimants in the non-convenience classes will receive distributions ranging between 103% and 105%. Eligible creditors can expect to receive their funds through designated accounts on BitGo, Kraken, or Payoneer, with transfers expected to process within one to three business days starting from July 31.<\/p>\n
<\/p>\n
Source: Sunil Kavuri<\/p>\n
This $900 million payout follows a massive $2.2 billion distribution executed in March. In total, the FTX Recovery Trust has successfully distributed roughly $10 billion to out-of-pocket users and creditors since the exchange filed for Chapter 11 bankruptcy protection in November 2022. The collapse, which triggered a severe industry-wide contagion, forced numerous digital asset platforms into insolvency. While the recovery percentages seem high on paper, they are pegged to the dollar value of digital assets at the time of the bankruptcy petition\u2014a period when crypto prices were at multi-year lows. Consequently, many creditors feel the payouts do not fully reflect the massive market recovery that has occurred since.<\/p>\n
The estate’s asset recovery journey has been marked by complex liquidations and legal battles. Recently, the law firm Fenwick & West, which served as outside counsel to FTX prior to its downfall, agreed to pay $54 million to settle a class action lawsuit brought by former exchange users. The settlement came just days after a group of 20 FTX users filed a lawsuit seeking $525 million from the firm, accusing it of facilitating the exchange’s fraudulent operations. Additionally, the estate has faced criticism over some of its asset management decisions, such as missing out on a staggering $3 billion valuation for its stake in AI startup Cursor after selling the position for a mere $200,000 in 2023.<\/p>\n
While the financial restructuring continues, key figures behind the fraud remain behind bars. Former FTX executives, including founder and CEO Sam \u201cSBF\u201d Bankman-Fried and Ryan Salame, the former co-CEO of FTX\u2019s Bahamian affiliate, are currently serving federal prison sentences for their roles in the multi-billion-dollar misuse of customer funds. Salame was sentenced for campaign finance violations and operating an unlicensed money-transmitting business, while Bankman-Fried was convicted on multiple counts of fraud and conspiracy.<\/p>\n
Bankman-Fried, who maintained his innocence throughout his high-profile criminal trial, was sentenced to 25 years in federal prison in 2024. His legal team\u2019s efforts to overturn the conviction suffered a major blow last month when a federal appellate court denied his appeal, upholding the original New York district court’s ruling. Facing decades behind bars, Bankman-Fried turned to political channels, applying for a presidential pardon from Donald Trump. However, Trump indicated in a January interview that he did not intend to grant clemency to the disgraced crypto founder.<\/p>\n
The prospect of a presidential pardon for Bankman-Fried has met fierce bipartisan resistance in Washington. This week, the U.S. Senate unanimously passed a resolution formally opposing any clemency for the former FTX chief. While the resolution is non-binding and cannot legally block the president’s executive pardon power, it serves as a powerful statement of unified congressional opposition. This legislative pushback comes amid heightened scrutiny over presidential pardons in the crypto space. Many lawmakers have openly criticized Trump’s decision to grant a pardon to former Binance CEO Changpeng Zhao. That controversy intensified after a UAE-based entity reportedly invested $2 billion into the exchange using a stablecoin issued by World Liberty Financial, a decentralized finance project closely tied to the Trump family business.<\/p>\n","protected":false},"excerpt":{"rendered":"
The winding down of the FTX estate continues to progress as the trust responsible for distributing funds to creditors of the defunct cryptocurrency exchange announced its next major payout. In a Friday notice, the FTX Recovery Trust and crypto exchange announced that they will initiate a new distribution of approximately $900 million starting on July …<\/p>\n","protected":false},"author":1,"featured_media":3851,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_sitemap_exclude":false,"_sitemap_priority":"","_sitemap_frequency":"","footnotes":""},"categories":[7],"tags":[6140,6136,6137,6135,6139,6138,6141,1705],"class_list":["post-3849","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto","tag-changpeng-zhao","tag-convenience-and-non-convenience-classes","tag-fenwick-west","tag-ftx-recovery-trust","tag-ryan-salame","tag-sam-sbf-bankman-fried","tag-sunil-kavuri","tag-world-liberty-financial"],"_links":{"self":[{"href":"https:\/\/nile1.com\/en\/wp-json\/wp\/v2\/posts\/3849","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nile1.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nile1.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nile1.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/nile1.com\/en\/wp-json\/wp\/v2\/comments?post=3849"}],"version-history":[{"count":1,"href":"https:\/\/nile1.com\/en\/wp-json\/wp\/v2\/posts\/3849\/revisions"}],"predecessor-version":[{"id":3850,"href":"https:\/\/nile1.com\/en\/wp-json\/wp\/v2\/posts\/3849\/revisions\/3850"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nile1.com\/en\/wp-json\/wp\/v2\/media\/3851"}],"wp:attachment":[{"href":"https:\/\/nile1.com\/en\/wp-json\/wp\/v2\/media?parent=3849"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nile1.com\/en\/wp-json\/wp\/v2\/categories?post=3849"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nile1.com\/en\/wp-json\/wp\/v2\/tags?post=3849"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}