FTX, the cryptocurrency exchange that collapsed in 2022, has begun repaying its creditors. Here’s a breakdown of the current situation as of February 19, 2025:
Repayments Initiated: Creditors started receiving payments on February 18, 2025.
Focus on Smaller Claims: The initial round targets claims under $50,000.
Initial Payouts: FTX aims to distribute $1.2 billion during this first phase.
Valuation Controversy: The repayment amounts are calculated using asset values from November 2022—the time of the collapse—which has drawn criticism. This method may result in creditors receiving less than what their claims would be worth today, particularly for assets like Bitcoin that have appreciated since then.
Upcoming Payments: Repayments for larger claims (over $50,000) are expected to begin in the second quarter of 2025.
This repayment process may also impact the broader cryptocurrency market. Some analysts believe that the influx of funds could drive increased trading activity and potentially influence the prices of major cryptocurrencies like Bitcoin.
