#FTXrepayment

FTX Initiates Repayments to Creditors, Plans Next Distribution

In a significant development, FTX has commenced the repayment process to its creditors, marking a pivotal step in addressing the aftermath of its 2022 collapse.

Initial Repayment Phase

• Date: February 18, 2025

• Amount: Approximately $1.2 billion

• Beneficiaries: Creditors with claims under $50,000, categorized as “Convenience Class”

• Details: These creditors are set to receive 100% of their approved claim amounts, plus an annual interest of 9% calculated from November 2022. 

This initial distribution addresses around 162,000 accounts, representing 35.21% of the total 460,000 eligible claims. 

Upcoming Distributions

• Record Date: April 11, 2025

• Distribution Date: May 30, 2025

• Beneficiaries: Creditors with claims exceeding $50,000 and any additional approved claims under $50,000 not settled in the initial phase

• Requirements: Creditors must have verified claims by the record date to qualify for this distribution. 

FTX has allocated between $14.5 billion and $16.3 billion for these repayments, aiming to return approximately 118% of the claimed amounts to 98% of its customers. 

Repayment Process

The distribution is facilitated through platforms like BitGo and Kraken. Creditors are required to complete Know Your Customer (KYC) verification, submit necessary tax forms, and onboard with one of these platforms to receive their funds. 

Leadership Remarks

John J. Ray III, the Plan Administrator of the FTX Recovery Trust, stated:

“We are pleased to commence initial distributions today and set the timeline for our next distribution. FTX appreciates our customers and creditors’ patience and collaboration throughout this complicated process. Our work is not over—we intend to continue our recovery efforts and returning funds to additional claim classes.”