#FTXrepayment

As of February 19, 2025, FTX has initiated the repayment process to its customers, more than two years after its collapse in November 2022. The first phase began on February 18, 2025, targeting creditors with claims up to $50,000. These individuals are receiving full repayment of their adjudicated claims, along with 9% annual interest accrued since November 11, 2022.

Subsequent repayment phases are scheduled for April 11 and May 30, 2025, aiming to distribute between €12.3 billion and €15 billion in recovered assets. FTX is collaborating with cryptocurrency platforms BitGo and Kraken to facilitate these distributions.

The repayment plan, approved by a U.S. Bankruptcy Court in October 2024, ensures that 98% of customers will receive approximately 118% of their claimed amounts. This favorable outcome is attributed to the significant appreciation in cryptocurrency values since the company's collapse.

In August 2024, a U.S. court mandated FTX to pay $12.7 billion to customers and fraud victims, marking the largest recovery in the Commodity Futures Trading Commission's history.

FTX's founder, Sam Bankman-Fried, was sentenced to 25 years in prison for fraud and conspiracy to launder money. Efforts to recover additional funds are ongoing, including a lawsuit filed in November 2024 against Binance and its former CEO, Changpeng Zhao, to reclaim $1.76 billion.

While the repayment process is a significant milestone, it has sparked discussions about the varying approaches to customer reimbursements in the cryptocurrency industry. For instance, FTX is repaying in cash based on asset values as of November 2022, whereas other platforms like Genesis Global are repaying in cryptocurrency, allowing customers to benefit from market rallies.