Creditors of collapsed crypto exchange FTX are about to receive another slice of what they're owed. The FTX Recovery Trust announced in a Friday notice that its next round of repayments — the fifth since the bankruptcy process began — will kick off on July 31, with roughly $900 million heading to claimants.

Who Gets Paid, and How Much

The upcoming distribution covers claimants in both the convenience and non-convenience classes under the recovery plan. Smaller convenience claims — those under $50,000 — will be reimbursed at 120% of their value, while larger claims will receive between 103% and 105%.

Eligible creditors will receive their funds through BitGo, Kraken, or Payoneer accounts, with payments expected to land within one to three business days of the July 31 start date.

Nearly $10 Billion Returned So Far

This round follows a $2.2 billion distribution in March and brings the trust's cumulative payouts to roughly $10 billion since FTX filed for bankruptcy in November 2022, during a market downturn that dragged multiple crypto firms into Chapter 11.

The legal fallout continues on other fronts as well. In May, Fenwick & West — the law firm that advised FTX before its implosion — agreed to a $54 million settlement in a class action brought by former users, shortly after a group of 20 FTX customers had sued the firm for $525 million.

No Pardon in Sight for Sam Bankman-Fried

Former FTX CEO Sam Bankman-Fried, convicted in 2023 and sentenced to 25 years in prison in 2024 for his role in the misuse of customer funds, remains behind bars along with Ryan Salame, the former co-CEO of FTX's Bahamian arm. A federal appeals court denied Bankman-Fried's challenge to his conviction and sentence last month.

Bankman-Fried had applied for a presidential pardon even before the appellate ruling landed, but the odds look slim. President Donald Trump said in a January interview that he had no plans to grant one, and this week the U.S. Senate unanimously passed a resolution opposing clemency for the former executive. The resolution can't legally prevent a pardon, but it signals rare bipartisan alignment — sharpened by criticism lawmakers have already directed at Trump's earlier pardon of former Binance CEO Changpeng Zhao, which followed a $2 billion UAE investment into Binance made using a stablecoin from the Trump family's World Liberty Financial venture.

What It Means for Claimants

For creditors who spent years wondering if they'd ever see their funds again, the recovery has turned out far better than early expectations — with smaller claimants recouping more than they were owed on a dollar basis. Those expecting a payout should ensure their BitGo, Kraken, or Payoneer accounts are set up and verified ahead of July 31.

Source: Reporting via Cointelegraph / TradingView News.