Following the collapse of FTX, a major cryptocurrency exchange that filed for bankruptcy in 2022, the recovery trust has initiated its fifth distribution round, releasing $900 million to affected user
In what is being seen as a significant milestone in FTX's recovery process, former users of the defunct exchange have reported receiving funds from the FTX Recovery Trust. The latest distribution amounts to $900 million, marking the fifth round since the collapse of FTX in late 2022.
The distribution was initiated by Sunil Kavuri, a user who shared his experience on an X post. According to Kavuri, he received notice from FTX that funds had been sent to Kraken, which proceeded with releasing them as scheduled. This development comes after years of uncertainty and financial loss for many affected users.
The FTX Recovery Trust has been working tirelessly since the exchange's bankruptcy filing in 2022 to return funds to its creditors. The trust is estimated to have paid out approximately $11 billion so far, a substantial step towards resolving the widespread financial issues that plagued the platform and its users.
FTX was one of the largest exchanges to collapse during the 2022 market downturn, leading to significant legal consequences for its former executives. Sam “SBF” Bankman-Fried and Ryan Salame are still in federal prison as of July 2026, while Caroline Ellison was recently released after serving more than a year.
Despite these efforts, the recovery process has faced challenges. A recent court ruling prevented the FTX trust from pursuing damages against Binance for $1.76 billion used to repurchase its stake in FTX. However, the trust is still seeking to recover this amount based on alleged misuses of funds by Bankman-Fried.
This distribution round is significant as it represents a tangible step towards resolving long-standing financial issues and restoring confidence among former users. Traders should monitor future distributions closely for any further updates or changes in the recovery process.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.