FTX Creditors Missing First Payout May Qualify for Q2 2025 Distribution
#FTXrepayment will begin repaying creditors on February 18, 2025, starting with those holding claims under $50,000, while larger claims are expected to be addressed in Q2 2025.
FTX Digital Markets, the Bahamian subsidiary of the collapsed cryptocurrency exchange FTX, will begin repaying creditors next week.
The repayment process follows FTX’s reorganization plan, which took effect on January 3 after years of bankruptcy proceedings and litigation to recover funds.
FTX Creditors Must Meet KYC & Tax Requirements Or Risk Missing Repayments
According to a February 14 X post from FTX Creditor Champion, Sunil Kavuri, the first batch of repayments will be processed on February 18, 2025.
These repayments will target claims under $50,000 classified as “convenience class” creditors. These individuals will receive 119% of their adjudicated claim value, totaling $1.2 billion in distributions.
While smaller claims will be prioritized, larger claims exceeding $50,000 are expected to be addressed in later distributions, likely beginning in the second quarter of 2025.
An estimated $17 billion will be disbursed in stages, with an initial payout of $7 billion projected for larger claimants.
FTX customers eligible for repayment must complete Know Your Customer (KYC) verification, submit a W-8 BEN tax form, and onboard with a designated distribution partner, BitGo or Kraken.
Those who fail to meet these requirements will not be included in the February 18 distribution but may qualify for future payouts if outstanding issues are resolved.
Notably, Kavuri has earlier stated that FTX has already notified customers who did not meet the requirements for the upcoming distribution.
Excluded creditors include those still under review, claims exceeding $50,000, or individuals who have not completed the necessary KYC, tax, or distribution provider steps.
The repayment timeline remains uncertain for these groups, but further distributions are expected in the coming months.
