FTX to Begin Customer Repayments Under $50K on February 18
FTX will start repaying customers with claims under $50,000 on February 18, 2025, including 9% interest.
- Repayments commence February 18 for claims under $50,000.
- Eligible creditors receive full claim value plus 9% interest.
- Payments processed through BitGo accounts.
FTX, the once-prominent cryptocurrency exchange that filed for bankruptcy in November 2022, has announced it will begin repaying customers with claims under $50,000 starting February 18, 2025. This move marks a significant step in addressing the losses suffered by many of its users.
Details of the Repayment Process
According to the Joint Official Liquidators (JOLs) of FTX Digital Markets Ltd., eligible creditors will receive 100% of their adjudicated claim value, capped at $50,000, along with an additional 9% interest per annum. The interest is calculated from November 11, 2022—the date of the bankruptcy filing—through the distribution date. Payments will be processed through BitGo, a digital asset custody platform. Creditors are required to verify their BitGo account details via the FTX Digital Claim Portal to facilitate the distribution.
Implications for Larger Creditors
While this development is positive for smaller creditors, those with claims exceeding $50,000 will need to wait longer for reimbursements. The broader bankruptcy proceedings are ongoing, with efforts focused on asset recovery and resolving legal disputes to maximize the value returned to all creditors.
Background on FTX’s Collapse
FTX’s sudden collapse in November 2022 was a significant event in the cryptocurrency industry. The exchange faced a severe liquidity crisis, leading to its bankruptcy filing and leaving many customers without access to their funds. Since then, the company’s new management has been working through complex bankruptcy proceedings to recover assets and develop a plan to repay creditors.
