FTX to Distribute $900M to Creditors as Bankman-Fried Pardon Hopes Dim

The upcoming payout targets creditors in the Convenience and Non-Convenience classes under the Chapter 11 reorganization plan. To qualify, claimants must have met all verification requirements by the June 16 record date. The exchange has tapped Kraken, Payoneer, and BitGo to facilitate the transfers, continuing the systematic effort to unwind the firm’s multibillion-dollar shortfall that triggered its 2022 collapse.

Simultaneously, the estate is processing an $18 million payment for Preferred Equity Holders through the Preferred Shareholder Remission Fund Trust. This latest tranche brings total payouts to this group to $95 million. While the bankruptcy estate maintains its schedule for omnibus hearings throughout the summer, the legal fallout surrounding the exchange remains volatile. The U.S. Senate recently blocked efforts to secure clemency for Bankman-Fried, and President Donald Trump has signaled he will not grant a pardon to the former executive, who is currently serving a 25-year prison sentence for fraud.

Legal proceedings continue to ripple through the industry beyond the primary case. In the Southern District of New York, Judge George Daniels recently denied a motion to dismiss campaign finance charges against Michelle Bond, scheduling her trial for November 9. Her case represents one of the final remaining criminal actions linked to the exchange’s implosion, even as the bankruptcy process slowly returns capital to those impacted by the firm's failure.