Key Points:
- FTX repayments will start on February 18, 2025, beginning with claims under $50,000 for those in the Bahamas process.
- Creditors are set to receive 118% of claim values based on November 11, 2022, crypto prices, though market fluctuations may impact actual value.
After more than two years of legal proceedings, cryptocurrency exchange FTX is set to begin repaying its creditors.
Read more: FTX Bankruptcy Plan Takes Effect With Claim Registrations
FTX Repayments Coming Soon After Long Legal Battle
The first round of FTX repayments will commence on February 18, 2025, at 10:00 a.m. Eastern Time, focusing on claims under $50,000. These initial payouts apply exclusively to creditors involved in the Bahamas process, while other claimants will need to wait until March 4.
FTX, once a leading cryptocurrency exchange, collapsed in November 2022 following revelations about financial instability within its affiliated trading firm, Alameda Research. The company’s bankruptcy left creditors facing significant losses, with billions in digital assets frozen. However, the recent FTX repayment plan marks a substantial step toward resolving the crisis.
Legal Challenges Continue Despite Repayment Progress
Creditors will receive 118% of their claim values, calculated based on cryptocurrency prices as of November 11, 2022. While this suggests full reimbursement with interest, market fluctuations mean that actual values may differ when measured in cryptocurrency holdings.
Additionally, those who failed to meet pre-distribution requirements by the January 20 deadline may experience delays in receiving funds.
However, the broader legal battle surrounding FTX’s bankruptcy continues, with unresolved issues including discussions with the U.S. Department of Justice over $1 billion in seized assets.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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