FTX, which declared bankruptcy in 2022 and whose founder Sam Bankman-Fried received a 25-year prison sentence, is set to initiate its fifth round of payments to creditors on July 31. The bankruptcy administration announced that approximately $900 million will be distributed to creditors in this round. Unlike previous rounds where payments were made separately to small and large investor groups, this time payments will be made collectively. Eligible stakeholders can receive their payments through BitGo, Kraken, and Payoneer platforms. The payments are expected to be processed within one to three business days after July 31.
The FTX bankruptcy administration has disbursed over $10 billion to date. The last payment round occurred in March, distributing a total of $2.2 billion. In addition, Fenwick & West, the legal firm that provided counsel to FTX before its bankruptcy, has reached an agreement with the groups of plaintiffs in a class action lawsuit, agreeing to pay $54 million in damages.
Sam Bankman-Fried’s requests for clemency have been rejected. He recently expressed a hope that former President Trump would grant him a pardon, but that option has now been closed. Trump has stated he will not take similar actions as he did with Ross Ulbricht during his presidency. The U.S. Senate also held a vote opposing any clemency for Bankman-Fried.
Last month, Bankman-Fried’s appeal against his 25-year prison sentence was also denied.
