Ex-FTX users report funds being released in $900M distribution round
Several users of the long-defunct crypto exchange reported that distribution agents had begun releasing funds to reimburse creditors for some of their 2022 losses.
The FTX Recovery Trust has commenced its fifth distribution of funds, totaling $900 million, to reimburse creditors for losses incurred in 2022 following the exchange's bankruptcy. Former user Sunil Kavuri disclosed that he had received the funds distributed through Kraken, marking the fifth round of attempts to repay FTX's creditors since the exchange's collapse in 2022.
This distribution brings the total amount paid out by the trust to approximately $11 billion. FTX's executives, including former CEO Sam Bankman-Fried and his co-CEO, are serving prison sentences for alleged misconduct, while former Alameda Research CEO Caroline Ellison has been released after serving over a year in federal prison.
A recent court ruling deemed the trust unable to pursue damages against Binance, but it has maintained its claim for $1.76 billion, alleging that Binance's stake in FTX was repurchased due to "malfeasance" by Bankman-Fried.
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