Failed Cryptocurrency Exchange FTX Says It Will Pay Back Some Creditors From the Bahamas on February 18, 2025

This repayment is aimed at customers with claims under $50,000 and will kick off at 10:00 a.m. ET.

bankrupt cryptocurrency exchange FTX will begin repaying some creditors in the Bahamas on February 18, 2025. This repayment will cover customers with claims under $50,000 and will start at 10:00 a.m. ET.

FTX says this phase of the repayment process is part of its reorganization plan, which was approved in December 2024 and went into effect in January 2025. Now that the payment system is in place, FTX hopes to restore some faith among its creditors who have stuck around.

FTX Repayment Plan: Claims Under $50K

FTX’s repayment plan will prioritize the “convenience classes,” which are creditors with claims below $50,000. Once these payments are made, FTX will wipe out all related claims, putting an end to a lengthy legal battle. The payment amounts will reflect the US dollar value of customer deposits as of November 2022, when Bitcoin was around $17,000.

FTX Repayments: 18 Feb 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

Since then, Bitcoin has soared to roughly $100,000, meaning creditors have lost out on substantial gains. For instance, a customer who had $50,000 in Bitcoin in November 2022 would have seen their holdings increase to about $295,000 today.

FTX and BitGo to Ensure Secure Fund Transfers To ensure the smooth distribution of funds, FTX has partnered with BitGo, a leading digital asset custody and security company. BitGo's technology will help prevent any delays or errors in getting the money out, which is crucial for maintaining creditor confidence.

While this first round of payments will cover smaller claims, FTX has said that larger repayments will follow, with further announcements to be made as the process unfolds.

FTX's Bankruptcy Announcement Comes 2 Years Later This announcement comes over two years after FTX filed for Chapter 11 bankruptcy protection. A liquidity crisis brought on by gross mismanagement, such as the unlawful transfer of customer funds to its sister company Alameda Research, led to FTX's downfall. This scandal has had severe legal repercussions, including the conviction and 25-year prison sentence of former CEO Sam Bankman-Fried.

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