The trust overseeing repayments to former FTX customers has begun a fifth round of creditor distributions, with roughly $900 million being released to affected users. Reports from former account holders on Friday indicated that some funds were already arriving through distribution partners.

One of those users, Sunil Kavuri, said in a post on X that he received money from the FTX Recovery Trust through Kraken. He added that he had been notified the previous week that FTX had transferred the funds to Kraken, which then released them on Friday in line with the planned distribution process that also involves BitGo and Payoneer.

Users report funds arriving

The latest payout round became visible as former FTX users began sharing that reimbursements were being processed. Kavuri said his payment had been sent through Kraken, offering one of the first public signs that the new wave of distributions had started.

According to his account, the transfer from the trust to Kraken had been communicated in advance, and the exchange released the funds on schedule. The broader plan for this round also includes BitGo and Payoneer as distribution channels.

Fifth round since the 2022 collapse

This is the fifth attempt to return money to creditors since FTX entered bankruptcy in 2022. The exchange’s failure left many customers unable to access their funds for years, making each distribution round a closely watched step in the broader recovery process.

With the current $900 million round, total repayments are estimated to reach about $11 billion. That figure reflects the cumulative amount sent to affected users across the recovery effort so far.

Background to the FTX failure

FTX was among the largest crypto exchanges to unravel during the 2022 market downturn. Its collapse became one of the defining events of that period and led to extensive legal and criminal fallout tied to the misuse of user funds.

Former chief executive Sam Bankman-Fried and Ryan Salame, the co-CEO of FTX’s Bahamian affiliate, were still in federal prison as of July. Former Alameda Research chief executive Caroline Ellison, meanwhile, was released in January after serving more than a year.

What comes next

The immediate next confirmed step in this process is the continued release of funds through the named distribution agents, including Kraken, BitGo and Payoneer, as scheduled under the fifth payout round.

For former users, the latest reports indicate that at least some payments are now moving from the trust to creditors. Further public updates are likely to come from recipients and the entities handling the distributions as the round continues.

Source: cointelegraph.com