Key Takeaways
- FTX will start repaying Bahamas-based creditors on February 18, beginning with claims under $50,000.
- Eligible creditors will receive 100% of their claim value plus 9% interest, processed by BitGo.
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FTX is set to begin repaying its creditors nearly three years after its collapse, marking a significant milestone in the aftermath of one of crypto’s most notorious bankruptcies.
According to an email sent to creditors, the first wave of reimbursements will start at 10 AM ET on February 18, focusing on claims under $50,000 categorized as “Convenience Class.”
The Joint Official Liquidators of FTX Digital Markets confirmed that eligible creditors will receive 100% of their adjudicated claim value up to $50,000, plus 9% annual interest calculated from November 11, 2022, through the payment date.
“The Joint Official Liquidators of FTX are pleased to inform you that you have completed all the required steps to be eligible to receive a distribution related to your Convenience Class claim and that a payment will be made to your nominated account,” according to an email sent to creditors.
BitGo, a crypto custody platform, will process the payments. While transactions may appear as pending up to 10 days before the distribution date, funds will become accessible starting February 18.
The initial distribution applies only to creditors in the Bahamas liquidation process. Other former FTX users must wait until March 4 for their reimbursements, according to a creditor advocate.
The recovery process has faced legal challenges since FTX’s bankruptcy filing in 2022, complicated by the appreciation in value of the lost crypto assets.
The 9% post-petition interest addition aims to address financial gaps during the bankruptcy period.
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