FTX Creditors Set to Finally Receive Repayments After 3 Years of Waiting, First Payouts for Claims Under $50K Set for 18 February

FTX to Begin Repayments for Smaller Creditors on 18 February 2025

FTX creditors are finally seeing light at the end of the tunnel following a long and arduous legal battle that has lasted more than two years.

Creditors who filed claims under $50,000 in the FTX bankruptcy case are set to receive their first repayments on 18 February 2025 at 10:00 a.m. Eastern Time.

This marks a crucial moment in the long-running bankruptcy process that followed the exchange’s collapse in November 2022.

Early Repayments For Small Creditors Begin This Month

A representative of FTX creditors, Sunil, confirmed that the repayments will be processed via BitGo, a crypto custody provider.

Creditors eligible under the “Convenience Class” category—those with claims up to $50,000—will receive their full adjudicated claim value along with 9% annual interest, calculated from the date FTX filed for bankruptcy.

These creditors will access their funds through the FTX Digital Claim Portal, with many already receiving email confirmations regarding the payout schedule.

Payments will be officially processed on 18 February, and once completed, the associated claims will be canceled.

Interest Compensation For Delayed Repayments

To compensate for the prolonged legal and financial uncertainty faced by creditors, the bankruptcy estate has included a 9% annual interest on eligible claims.

This interest is calculated from 11 November 2022 until the payment date.

The addition of post-petition interest is a response to the significant delays in returning funds, particularly as the appreciation in crypto asset values since FTX’s collapse has complicated the bankruptcy proceedings.

FTX Users Outside The Bahamas Must Wait Longer

While creditors in the Bahamas liquidation process will be the first to receive payments, other former FTX users will have to wait.

According to a creditor advocate, reimbursements for non-Bahamian creditors will begin on 4 March 2025.

BitGo will handle all transactions, though payments may appear as pending up to 10 days before the official distribution date.

Funds will only be accessible once the transactions are fully processed.

Uncertainty Remains For Large Creditors

While this initial repayment brings relief to many smaller creditors, uncertainty looms over those with claims exceeding $50,000.

There is no confirmed timeline for when they will receive their share, as the bankruptcy estate continues to work on asset recovery and settlement negotiations.

FTX’s restructuring plan, approved in October 2024, prioritised smaller creditors to receive repayments first.

Larger creditors are expected to receive distributions in later phases, though specific details remain unclear.

Potential Impact On The Crypto Market

The repayment process could inject significant capital into the crypto market, with industry analysts predicting a potential boost in trading activity.

Some speculate that Bitcoin’s value could exceed $200,000, driven by FTX repayments and increasing regulatory clarity in the United States.

FTX’s collapse left thousands of creditors in financial limbo, and while this marks a step forward, the bankruptcy estate continues its efforts to maximise recoveries for all affected parties.

Further updates on additional repayments are expected in the coming months.