FTX Distributes $900M in Fifth Payout Amid Pardon Debate

Woofun AI reports that the FTX Recovery Trust has scheduled its fifth creditor distribution for July 31, targeting both convenience and non-convenience classes within the defunct exchange’s recovery framework.

The $900 million payout will be processed through BitGo, Kraken, or Payoneer accounts, with funds arriving within one to three business days. Under the plan, convenience claims under $50,000 receive a 120% reimbursement, while other claimants are allocated between 103-105% distribution. This follows a March disbursement of $2.2 billion, bringing total payouts to approximately $10 billion since FTX filed for Chapter 11 bankruptcy in November 2022.

Legal repercussions continue to mount for former leadership and advisors. Sam 'SBF' Bankman-Fried and Ryan Salame, co-CEO of the Bahamian affiliate, remain in federal prison for their roles in misusing customer funds. In May, Fenwick & West agreed to pay $54 million to settle a class action lawsuit filed by 20 FTX users seeking $525 million. Bankman-Fried was sentenced to 25 years in prison in 2024 after pleading not guilty to criminal charges.

Woofun AI data shows that Bankman-Fried’s appeal was denied last month when a federal court upheld the New York court ruling. Despite this, he applied for a pardon from Donald Trump, who stated in a January interview that he did not plan to grant clemency. The US Senate unanimously adopted a resolution opposing such clemency, reflecting bipartisan resistance to pardoning a convicted felon.

Political scrutiny intensifies as lawmakers criticize potential pardons, citing the case of Changpeng Zhao, former Binance CEO. A UAE entity invested $2 billion into Binance using a stablecoin issued by World Liberty Financial, a Trump family business, fueling controversy over executive clemency in crypto-related convictions.