FTX to Start Repayments for Bahamas Creditors with Claims Under $50k on Feb. 18

Highlights:

• FTX creditors begin reimbursement on February 18 for claims up to $50,000 via BitGo.
• Eligible creditors receive full claims plus 9% interest, marking first repayments post-restructuring.
• Bahamas creditors receive initial payments; others will start reimbursements on March 4.

FTX creditors will receive reimbursement for their lost assets starting at 10 AM ET on February 18. This payout process will be limited to claims of $50,000 or less. The creditors, referred to as the “Convenience Class” in court proceedings, have been officially notified of this development through email from the Joint Official Liquidators (JOLs).

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These initial payments will be distributed exclusively to creditors involved in the Bahamas process. Users from other categories can expect their payments to start on March 4. The email also stated that BitGo, a cryptocurrency custody service, will process all repayments for this group.

FTX Creditors Must Verify BitGo Accounts and Update Bank Details

FTX creditors must verify their BitGo accounts to receive payments, as funds will only be sent to verified accounts listed on the FTX Digital Claim Portal. Creditors must contact liquidators by February 6 if they cannot access their nominated bank account or if details have changed.

Once payments are made, they cannot be reversed. Although transactions may show as pending for up to 10 days before the distribution date, funds will be available beginning February 18.

The email began:

“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.” 

Creditors to Receive Full Claims and Interest in the First Repayment Phase

Creditors will receive the full value of their adjudicated claims up to $50,000, along with 9% annual interest, calculated from November 11, 2022, until the payment date. This marks the first repayment after years of restructuring and creditor compensation proposals. In November last year, the FTX estate projected that reimbursements would start by March, with creditors holding claims under $50,000 expected to receive approximately 118% of their claims.

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

— Sunil (FTX Creditor Champion) (@sunil_trades) February 4, 2025

FTX’s Sudden Collapse and Ongoing Efforts for Asset Recovery

FTX, once one of the world’s largest crypto exchanges with a valuation of $32 billion, collapsed suddenly in November 2022. Reports revealed that Alameda Research, a firm linked to FTX, used customer funds to cover its own losses, sparking the downfall. As customers rushed to withdraw their funds, FTX couldn’t meet the demand, leading to a suspension of withdrawals and a subsequent bankruptcy filing.

The crisis ultimately resulted in criminal charges for FTX founder and ex-CEO Sam Bankman-Fried. In November of the following year, a court convicted him of multiple fraud and conspiracy charges for misappropriating billions of customer funds. Other former FTX executives, such as Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang, admitted to related charges and agreed to cooperate with authorities.

Since November 2022, John J. Ray III has led the recovery of FTX’s lost assets. FTX recently reached an undisclosed settlement with K5 Global to assist in recovering assets. K5 Global will focus on maximizing returns for FTX stakeholders.

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