FTX Announces $900 Million Distribution Amid SBF Pardon Challenges

FTX Plans Major Creditor Payout

On July 31, 2026, FTX will proceed with its fifth distribution to creditors, returning nearly $900 million amidst ongoing challenges faced by founder Sam Bankman-Fried in securing clemency for his criminal conviction.

Details of the Distribution

This upcoming payment will be made to creditors with approved claims in both the Convenience and Non-Convenience Classes as part of FTX’s Chapter 11 reorganization plan. To qualify, claimants must have completed all pre-distribution requirements by the June 16 record date.

Payments will be facilitated via FTX’s approved distribution providers, including Kraken, Payoneer, and the crypto custody service BitGo. While FTX has confirmed the total amount for this round, a breakdown by claim class has not been disclosed. Future payment dates will be announced subsequently.

Additional Payments for Preferred Shareholders

In addition to the creditor distribution, FTX will make a second payment of $18 million to eligible Preferred Equity Holders on the same date. This payment will increase total distributions from the Preferred Shareholder Remission Fund Trust to $95 million. Payments for individual shareholders will be handled by Kraken, while BitGo will manage institutional payouts.

Bankman-Fried’s Pardon Efforts Stall

As these distributions take place, Bankman-Fried is actively seeking a presidential pardon, currently serving a 25-year sentence after being found guilty of fraud and conspiracy related to the collapse of FTX. Recently, his clemency campaign faced significant setbacks, with the U.S. Senate rejecting a pardon proposal.

Furthermore, President Donald Trump has indicated he will not intervene on Bankman-Fried’s behalf, complicating his hopes for an early release.

Continuing Legal Challenges

While FTX manages creditor returns, legal proceedings associated with the exchange are ongoing. Notably, a federal judge recently denied an attempt by Michelle Bond to dismiss charges connected to campaign finance violations. Her trial has been set for November 9, 2026. Bond’s case is among the last of the criminal proceedings stemming from the FTX debacle, which began following the exchange’s significant financial troubles that led to its bankruptcy in 2022.