Bankrupt cryptocurrency exchange FTX is set to commence repayments to its creditors, starting February 18, 2025. The initial phase prioritizes users with claims of $50,000 or less. The total payout is estimated to be around $16 billion.
KEY POINTS OF THE REPAYMENT PLAN:
- START DATE: February 18, 2025, at 10 AM ET1
- PRIORITIZATION: Creditors with claims of $50,000 or less will be paid first. This group represents approximately 98% of eligible creditors.
- TOTAL DISTRIBUTION: Approximately $16 billion. The initial payout is estimated between $6.5 billion and $7.5 billion.
- PAYMENT DETAILS: Eligible claimants will receive 100% of their claim value, plus an additional 9% interest calculated from November 11, 2022, until the payment date.
- DISTRIBUTION PARTNERS: BitGo and Kraken will process the payments.
- VALUATION: Repayments are based on cryptocurrency prices at the time of FTX’s bankruptcy in November 2022. This means creditors will be reimbursed based on the value of their holdings at that time, rather than current market values. For example, if a user held 1 Bitcoin (BTC) on FTX when it collapsed, they would receive the equivalent value of BTC in November 2022.
- REQUIREMENTS: Creditors must complete KYC (Know Your Customer) verification and submit tax forms to receive funds.
The restructuring plan was approved in October 2024, and took effect January 3, 2025. The repayments mark a significant step in the aftermath of FTX’s collapse in November 2022, following allegations of misuse of customer funds12.
