#FTXrepayment

FTX Begins Creditor Repayments After 2022 Collapse

Repayment Process and Initial Distributions

FTX, the cryptocurrency exchange that collapsed in November 2022, has begun repaying its creditors in a major step toward resolving its bankruptcy case. On February 18, 2025, FTX initiated the first round of payments to creditors with claims up to $50,000, known as the “Convenience Class.” These creditors are expected to receive their funds within 1 to 3 business days, with a total distribution amount of approximately $1.2 billion. Payments are being processed through BitGo and Kraken to ensure secure transactions.

Upcoming Distributions

For creditors with claims above $50,000, FTX has announced a structured payout schedule:

Record Date: April 11, 2025 – Creditors must have verified claims by this date.

Distribution Date: May 30, 2025 – Payments for verified claims will begin.

FTX aims to distribute between $14.5 billion and $16.3 billion, with the goal of repaying more than 100% of customer claims, a rare outcome in bankruptcy cases.

Legal Proceedings and Settlements

Since FTX's collapse, multiple legal proceedings have taken place:

Founder’s Sentencing: In March 2024, Sam Bankman-Fried (SBF) was sentenced to 25 years in prison for fraud and conspiracy.

Settlements: In January 2025, FTX reached a settlement with K5 Global, a venture capital firm, to recover more funds for creditors.

FTX’s Path Forward

With creditor repayments now underway, FTX is working towards closing one of the largest financial disasters in crypto history. While legal matters continue, the exchange’s focus remains on restoring funds to affected users.