- FTX will start repaying Bahamas creditors on February 18, covering claims up to $50,000.
- Creditors outside the Bahamas will receive payments from March 4 with 9% annual interest.
- FTX secured $16.5B for repayments, but market fluctuations may impact the final value.
FTX will begin paying its creditors in the Bahamas on February 18, 2025. The first phase will include claims of $50,000 or less. Payments will be processed through BitGo, a crypto custody platform handling the recovered assets.
FTX Repayment Plan and Interest Payments
FTX has planned a structured repayment process for its creditors. Those outside the Bahamas will begin receiving their payments on March 4. Eligible creditors will also receive 9% annual interest on their lost assets.
The interest will be calculated from November 11, 2022. This is based on the asset values at the time of FTX’s collapse. The plan ensures creditors recover their claims along with compensation for the lost time.
Creditors Must Follow a Structured Process
Bahamas-based creditors account for 98% of those eligible for the initial payouts. They must log into the claims portal and complete the required verification steps. The process includes KYC verification, tax form submission, and registration with Kraken or BitGo.
FTX’s repayment plan was approved in October 2024 as part of its reorganization efforts. The plan took effect on January 3, 2025, after securing up to $16.5 billion in recovered assets. These funds will be distributed to affected creditors through the structured process.
Settlement Agreements and Asset Recovery
FTX has reached a settlement with K5 Global to assist with asset recovery. The financial details of this agreement remain undisclosed. However, K5 Global is expected to maximize returns for stakeholders affected by the collapse.
CEO John Ray III described the settlement as a positive step in resolving creditor claims. This agreement follows earlier settlements, including one with LayerZero. These efforts aim to increase the amount of funds available for repayment.
Challenges That May Affect Payments
FTX creditors will recover 118% of their claim value in USD. However, these calculations are based on crypto prices from November 2022. Market fluctuations could impact the actual value of the distributed funds.
Some creditors may experience delays if they missed the January 20 pre-distribution deadline. Ongoing discussions with the U.S. Department of Justice over $1 billion in seized funds may also affect the repayment schedule. These factors could slow down the distribution process.
Legal Developments Surrounding FTX
FTX founder Sam Bankman-Fried’s parents are pushing for a presidential pardon. They have engaged with individuals in Donald Trump’s network to explore clemency options. Legal experts note an increase in white-collar clemency requests under Trump’s influence.
Bankman-Fried’s legal team is appealing his 25-year fraud sentence. His chances of securing a pardon remain uncertain due to a lack of public support. Meanwhile, creditors continue to await their repayments as FTX moves forward with its structured plan.
