FTX to Initiate Repayments for Creditors with Claims Under $50,000 on February 18

Rudy Fares FTX, the beleaguered cryptocurrency exchange, is set to commence repayments to creditors holding claims below $50,000 starting February 18, 2025.

Beleaguered cryptocurrency exchange FTX will begin repaying creditors with claims under $50,000 on February 18, 2025, based on November 2022 deposit values, the company announced on Friday.

The payments will be made through BitGo, a digital asset custody and security firm.

FTX is set to begin repaying creditors with claims under $50,000 on February 18, 2025. (Photo by Rudy Fares on Unsplash)Rudy Fares

FTX, the beleaguered cryptocurrency exchange, is set to commence repayments to creditors with claims below $50,000 starting February 18, 2025. This move is part of FTX’s broader reorganization plan aimed at addressing the financial fallout from its 2022 collapse.

According to a recent announcement, the payments will be made through BitGo, a digital asset custody and security firm. The payments will be made based on each creditor's crypto assets on deposit with FTX as of November 2022, and will be distributed in a single payment.

FTX is also planning to sell off its non-U.S. assets, which could fetch up to $4 billion and be used to repay creditors. Among the assets up for sale are FTX Europe and derivatives platform LedgerX, both of which are expected to attract interest from several potential buyers, including Binance and IEX Group.

FTX filed for bankruptcy in November 2022 after a liquidity crisis and allegations of misuse of customer funds. The exchange's founder, Sam Bankman-Fried, has been charged with multiple counts of fraud and is currently out on bail awaiting trial.

The beleaguered cryptocurrency exchange is now operating under the leadership of John J. Ray III, who previously oversaw the liquidation of Enron. Under Ray's leadership, FTX has been exploring various avenues to maximize recoveries for its creditors, including the sale of certain assets and the potential recovery of funds from former executives.

Rudy Fares is an Equity Trader, Financial Consultant, Musician and Blockchain Aficionado. He spends his time doing Technical and Fundamental Analyses for Stocks, Currencies, Commodities and Cryptocurrencies.