Cryptocurrency exchange FTX made immense headlines back in 2022 for its collapse. Even though two years have passed since this debacle, creditors have been patiently awaiting payout. According to recent reports, the Bahamian unit of the firm FTX Digital Markets is all set to kickstart repayments later this month.
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FTX Creditors Fueled With Hope
FTX Digital Markets will reportedly start allocating cash based on claims from “convenience class” creditors on February 18. This was brought to light by FTX creditor Sunil Kavuri earlier this week. According to Kavuri’s distribution letter, the exchange users who made claims under $50,000 might anticipate receiving “100% of adjudicated claim value” in addition to 9% annual interest starting in November 2022. The email read,
“The Joint Official Liquidators of FTX are pleased to inform you that you have completed all the required steps to be eligible to receive a distribution related to your Convenience Class claim and that a payment will be made to your nominated account.”
FTX Repayments: 18 Feb 2025
— Sunil (FTX Creditor Champion) (@sunil_trades) February 4, 2025
Funds available from 10am ET
FTX Claims < $50k
FTX Creditors in the Bahamas process have email confirmation that repayments will start on 18 Feb 2025
9% interest per annum from 11 Nov 2022 pic.twitter.com/FrmDN4qiK7
BitGo is a well-known crypto custody platform that is all set to handle FTX’s repayment process. The businesses involved pointed out that up to ten days before the distribution date, the transactions might still show as pending. However, money will be available on February 18.
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What About the Other Users?
It should be noted that only creditors involved in the Bahamas liquidation procedure are eligible for the first payout. According to a creditor advocate, other former FTX subscribers will not receive their refunds until March 4.
Meanwhile, Sam Bankman-Fried (SBF) is still in prison on various fraud charges related to the cryptocurrency exchange. Back in March 2024, SBF was sentenced to 25 years. While the founder of the firm sits in prison, the users of FTX are hopeful about receiving their funds sooner rather than later.
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