FTX will send nearly $900 million back to creditors on July 31 as the bankrupt exchange advances its Chapter 11 wind-down — even as hopes for a Sam Bankman‑Fried (SBF) presidential pardon appear to be dwindling.
What’s happening
- The July 31 distribution is the fifth round of repayments under FTX’s court‑approved reorganization plan. It covers creditors with approved claims in the Convenience and Non‑Convenience Classes who met all pre‑distribution requirements by the June 16 record date.
- FTX named Kraken, Payoneer and crypto custodian BitGo as approved distribution providers. The company did not disclose how the nearly $900 million will be split between claim classes.
- Future record and payment dates have not yet been announced. The bankruptcy estate’s legal calendar remains active, with omnibus hearings set for July 23 and Aug. 16.
Preferred equity payout
- On the same day, FTX will issue a second payment to eligible Preferred Equity Holders. That distribution will total $18 million from the Preferred Shareholder Remission Fund Trust, bringing total trust payments to $95 million.
- Individual preferred shareholders will receive funds via Kraken; institutional recipients will be paid through BitGo. FTX says it began contacting eligible Preferred Equity Holders in January to help complete verification steps.
Background and legal context
- FTX collapsed in 2022 after a liquidity crisis exposed a multibillion‑dollar shortfall. Under the Chapter 11 plan, repayments hinge on claim approvals, record‑date eligibility and completion of verification requirements.
- Criminal cases tied to the exchange continue alongside the bankruptcy. Notably, a federal judge denied former FTX-affiliate Michelle Bond’s request to dismiss four campaign finance–related charges and set her trial for Nov. 9. Judge George Daniels rejected Bond’s contention that prosecutors had promised not to charge her if her husband, former FTX executive Ryan Salame, pleaded guilty.
SBF pardon prospects fade
- Former CEO Sam Bankman‑Fried—now serving a 25‑year sentence after a federal jury convicted him on fraud and conspiracy charges—has pursued clemency efforts. Those efforts have faltered recently: the U.S. Senate rejected a clemency push, and President Donald Trump has signaled he does not intend to pardon SBF, reducing the likelihood of an early release via presidential action.
The July distributions mark another step in unwinding one of crypto’s largest failures, as the bankruptcy estate continues to return assets to creditors while related criminal proceedings move forward.
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