#FTXrepayment

FTX Begins Creditor Repayments: What You Need to Know

FTX, the bankrupt cryptocurrency exchange, has started repaying creditors, marking a significant milestone in its recovery process. On February 18, 2025, the first round of repayments—totaling $1.2 billion—was distributed to creditors with claims of $50,000 or less. These repayments are based on cryptocurrency values from November 2022, when FTX collapsed.

A second repayment round is scheduled for May 2025, covering larger claims exceeding $50,000. In total, FTX aims to return over $16 billion, primarily in cash. However, this approach has drawn criticism, as some argue creditors should receive repayments in cryptocurrency rather than fiat.

FTX’s collapse in late 2022 had a lasting impact on the crypto market, but these repayments signal progress. Meanwhile, legal battles continue, including a lawsuit against Binance to recover $1.8 billion. As FTX navigates its bankruptcy, creditors await further updates on future payouts.