#FTXrepayment
FTX, the once-prominent cryptocurrency exchange that collapsed in late 2022, has begun the process of repaying creditors. On February 18, 2025, FTX began distributing approximately $1.2 billion to creditors with claims under $50,000, marking a significant milestone in the company’s bankruptcy proceedings.
The initial phase targets “comfort class” creditors, who are expected to receive full repayment of their claims plus 9% annual interest accrued since November 2022. These repayments are based on the value of the assets at the time of FTX’s bankruptcy filing.
FTX has partnered with cryptocurrency firms Kraken and BitGo to facilitate the distribution of the funds. Creditors are required to complete a Know Your Customer (KYC) check and submit the necessary tax forms to receive their repayment. The next round of distributions is scheduled for May 30, 2025, with a focus on creditors with claims greater than $50,000.
The overall repayment plan seeks to distribute between $14.5 billion and $16.3 billion to creditors, with the goal of reimbursing 98% of users more than their original claims, based on account values as of November 2022.
While these repayments are a positive development for creditors, some have expressed concerns about the repayment model. Given that cryptocurrency prices have increased significantly since November 2022, repayments calculated based on asset values at that time may not reflect