FTX Recovery Trust Announces Third Tranche of Distributions to Creditors
The FTX Recovery Trust, responsible for overseeing the distribution of funds from the bankrupt crypto exchange, has announced a third tranche of distributions to creditors worth approximately $1.6 billion. This significant payout is scheduled for September 30, with creditors expected to receive their funds within three working days after the payment date.
According to the announcement, the third distribution includes a payout of 6% for Dotcom customer claims, 40% for US customers, and 24% for general unsecured claims and digital wealth loan claims. Additionally, convenience claims will receive a reimbursement of 120% as part of the September payment. The FTX Recovery Trust began its distribution process in February with a payment of $1.2 billion to reimburse creditors, followed by a distribution of $5 billion in May.
Source: Sunil Kavuri
The trust has up to $16.5 billion in assets intended for its creditors and former customers. The collapse of the FTX exchange in 2022 sent shockwaves through the crypto world, deepening the crypto bear market that began at the start of the year. As the FTX Recovery Trust continues to make refunds, the potential effects on the cryptocurrency markets are being closely monitored.
Former FTX CEO Sam Bankman-Fried’s Appeal
In November 2023, Sam Bankman-Fried, the founder and former CEO of FTX, was found guilty on seven charges, including wire fraud, conspiracy of wire fraud, securities fraud, conspiracy of commodities fraud, and money laundering conspiracy. Bankman-Fried was sentenced to 25 years in prison in March 2024. Judge Lewis Kaplan, who oversaw the trial, characterized the collapse of the exchange and Bankman-Fried’s role in the implosion as a “serious” crime, justifying decades behind bars.
Bankman-Fried’s lawyers will appeal his conviction in November, arguing that he did not receive a fair trial and was presumed guilty from the start. The lawyers also argue that FTX was never insolvent and always had the means to fulfill its obligations and reimburse customers and creditors.
For more information on the FTX Recovery Trust and its distributions, visit the official website or consult credible sources. The refunds of the FTX Recovery Trust are a significant development in the cryptocurrency space, and their potential effects on the markets will be closely watched. Read more about the latest updates on the FTX recovery process at https://cointelegraph.com/news/ftx-recovery-trust-unlock-1-6b-creditors-september-disbursement?utm_source=rss_feed&utm_medium=rss_tag_altcoin&utm_campaign=rss_partner_inbound
