#FTXrepayment

FTX Repayment Update – February 19, 2025

FTX Finally Starts Paying Back Creditors

More than two years after its spectacular downfall in November 2022, FTX has begun distributing funds to its creditors. The first wave of repayments kicked off on February 18, 2025, prioritizing those with claims under $50,000—a group dubbed the "Convenience Class." These claimants are receiving 118% of their owed amount, including accrued interest, marking a rare case where some creditors actually walk away with more than they initially lost.

Bigger Creditors Still Waiting

While smaller claims are being settled, larger creditors must wait a little longer. The next round of payouts is slated for May 30, 2025, covering claims over $50,000. Eligible creditors must verify their claims, complete KYC, and submit tax documentation before the April 11, 2025 deadline.

Where’s the Money Coming From?

FTX has managed to recover between $14.7 billion and $16.5 billion through asset liquidations and clawbacks. However, these funds come with a major point of contention—payouts are based on November 2022 crypto prices. This means many creditors are receiving far less than their assets’ current market value, sparking frustration among those who believe they are being shortchanged.

The Bigger Picture: Legal Fallout

Sam Bankman-Fried (SBF): Once the face of FTX, SBF is now serving a 25-year prison sentence for orchestrating one of the biggest financial frauds in history.

Gary Wang (Co-founder): Having cooperated with authorities, Wang avoided prison and received a time-served sentence with supervised release.

What Comes Next?

FTX’s restructuring team insists that their focus remains on maximizing recoveries. But with ongoing legal battles and regulatory scrutiny, the final chapter of FTX’s bankruptcy saga is far from written. Creditors are urged to stay informed, meet all necessary deadlines, and prepare for what could be one of the most complex crypto repayments ever seen.