The FTX Recovery Trust has initiated the distribution of $5 billion to former users, marking a significant step in its Chapter 11 proceedings. The payout is managed by BitGo and Kraken, distributing cash payments to eligible creditors. This follows a prior $1.2 billion disbursement aimed at smaller claims. These funds are drawn from liquidated assets of the defunct platform and were distributed without impacting crypto markets directly as they were delivered in fiat currency. While this represents a major step forward for affected users, it remains controversial with some expressing disappointment over the lack of crypto-based compensation. The payout process demonstrates an approach consistent with other major bankruptcies such as Mt. Gox, offering rapid resolution for user claims. Future recoveries are expected to remain primarily focused on fiat currency, potentially indicating a shift in strategy away from reintroducing cryptocurrency holdings into consumer accounts.