FTX to Distribute $900 Million to Creditors as SBF Clemency Bid Falters

The upcoming round targets creditors in the Convenience and Non-Convenience classes who completed verification by the June 16 record date. According to creditor advocate Sunil Kavuri, funds will be disbursed via BitGo, Kraken, or Payoneer, with arrivals expected within three business days. Under the court-approved plan, claims under $50,000 are slated to receive 120% of their value, while larger eligible claims are projected to recover between 103% and 105%.

While the estate continues to return assets, the process remains contentious. Critics have pointed to missed opportunities, such as the 2023 sale of a stake in Anysphere for $200,000—an asset that later ballooned to a $3 billion valuation. Concurrently, legal fallout persists; law firm Fenwick & West recently agreed to a $54 million settlement regarding their role in the exchange’s corporate structure, though the firm denies any wrongdoing.

Former CEO Sam Bankman-Fried, currently serving a 25-year sentence, has exhausted his appeal after a federal court upheld his fraud conviction this past June. His push for a presidential pardon has hit a wall in Washington, where the U.S. Senate unanimously passed a resolution opposing clemency for the disgraced executive. While the resolution is non-binding, it signals a lack of political appetite for his release as the exchange’s bankruptcy estate continues its long-running reconciliation efforts.