<p>FTX has not finished making history in crypto. Nearly four years after the bankruptcy that shook the industry, the platform reaches a new milestone in repaying its former clients. Billions of dollars continue to return to the hands of creditors, with consequences far beyond the judicial framework. This massive redistribution of capital could revive market activity and measure, for the first time on a large scale, the real impact of a crypto bankruptcy on the entire ecosystem.</p>
<div class="in-brief">
 <div class="in-brief--container"><span></span><span></span>
  <h2 class="in-brief--title" id="in-brief">In Brief</h2>
  <ul>
   <li>The FTX Recovery Trust activates its 5th wave of repayments for the victims of the 2022 bankruptcy.</li>
   <li>Funds are routed through specialized partner platforms such as Kraken, BitGo, and Payoneer.</li>
   <li>Nearly $11 billion has now been returned to the harmed creditors.</li>
   <li>The court rejects the damages claimed by FTX, but upholds the $1.76 billion clawback claim.</li>
  </ul>
 </div>
</div>
<h2 id="a-fifth-wave-of-distribution-and-the-actual-payment-of-900-million">A fifth wave of distribution and the actual payment of $900 million</h2>
<p>The judicial restructuring of FTX’s assets is concretely illustrated by <a href="https://www.cointribune.com/en/ftx-continues-its-repayment-plan-with-a-fifth-distribution-bringing-the-total-to-10-billion/" rel="noopener noreferrer nofollow">the official launch of a fifth compensation wave</a> targeting creditors. The FTX Recovery Trust relies on several regulated entities and financial intermediaries to channel the funds to the affected users :</p>
<div class="my-4">
 <div class="ads "></div>
</div>
<ul>
 <li>The released amount : a total envelope of $900 million allocated during this fifth distribution round ;</li>
 <li>Partner distribution platforms : Kraken, BitGo, and Payoneer ;</li>
 <li>A creditor’s testimony : Sunil Kavuri, a representative figure of former users, <a href="https://cointelegraph.com/news/ftx-users-funds-released-fifth-distribution-round?utm_campaign=rss_partner_inbound&amp;utm_medium=rss&amp;utm_source=rss_feed" rel="noopener noreferrer nofollow">confirmed</a> the actual payment of funds and specified having received prior notification the previous week indicating the transfer of FTX liquidity to Kraken.</li>
</ul>
<div class="tweet">
 <blockquote class="twitter-tweet"><a href="https://twitter.com/sunil_trades/status/2083213000425546008?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow"></a>
 </blockquote>
</div>
<p>On a global accounting level, this operation raises the cumulative amount of repayments allocated by the liquidation structure to around $11 billion. For thousands of private and institutional investors deprived of access to their accounts since the company’s collapse in November 2022, this measure marks the completion of the administrative liquidation proceedings. Transfers are made through secure wire transfers via regulated infrastructures, thus avoiding payment frictions.</p>
<h2 id="targeted-legal-actions-and-recovery-efforts-against-binance">Targeted legal actions and recovery efforts against Binance</h2>
<p>Beyond the redistribution of recovered funds, the legal case has been enriched by a fundamental ruling concerning past financial interactions between FTX and other industry giants. Chief Judge Karen B. Owens, presiding at the bankruptcy court, <a href="https://www.deb.uscourts.gov/sites/deb/files/opinions/Final%20Opinion%20and%20Order%20on%20Motions%20to%20Dismiss.pdf" rel="noopener noreferrer nofollow">decided a decisive motion</a> stating that the FTX trust could not pursue general damages claims against the Binance exchange and its former CEO Changpeng Zhao.</p>
<p>However, the magistrate refused to dismiss the restitution claim filed by the liquidation trust, which seeks the return of $1.76 billion from Binance. Indeed, these funds correspond to the amount historically paid by FTX to buy back Binance’s stake in its own capital, a transaction which the liquidators partly attribute to widespread and now well-known frauds by Sam Bankman-Fried. This judicial decision paves the way for a complex litigation aiming to determine whether these funds should be reintegrated into the estate for the direct benefit of creditors.</p>
<div class="affiliate-button"><a href="https://kraken.pxf.io/K0XRaaes" rel="noopener noreferrer nofollow">Start your crypto adventure safely with Kraken</a><a href="https://www.cointribune.com/en/sponsored-content/" rel="noopener noreferrer nofollow">This link uses an affiliate program.</a>
</div>
<h2 id="h-the-incarceration-of-ftx-founders-and-the-firmness-of-the-u-s-senate">The incarceration of FTX founders and the firmness of the U.S. Senate</h2>
<p>On the criminal and institutional level, the fate of the main protagonists of the bankruptcy remains firmly governed by the U.S. judicial system. In July, former CEO Sam Bankman-Fried and Ryan Salame, former co-CEO of FTX’s Bahamian subsidiary, are still serving their sentences in a federal penitentiary facility.</p>
<p>In contrast, Caroline Ellison, former head of the investment fund Alameda Research, was released last January after serving more than a year in detention. The severity shown towards Bankman-Fried is supported by the political sphere. Thus, the U.S. Senate unanimously voted on a resolution officially opposing any form of presidential pardon or clemency measure in favor of the exchange’s founder.</p>
<p>This final stage of payment illustrates a deep evolution in the management of failures within the crypto ecosystem. The redistribution of $11 billion to FTX creditors demonstrates the theoretical strength of restructuring procedures under U.S. law, while restoring an essential part of liquidity to the market. Nevertheless, institutions’ strictness towards past fraud confirms that the industry’s future maturity now rests on strict compliance with asset segregation principles and impeccable corporate governance.</p>

FTX Continues Large Scale Repayments To Former Customers

Table of Contents

Cointribune EN

Other articles published on Aug 1, 2026

Join our free newsletter for daily crypto updates!