#FTXrepayment As of February 19, 2025, FTX has initiated the process of repaying its creditors following its collapse in November 2022. The repayment plan became effective on January 3, 2025, with initial distributions expected within 60 days of this date. This first phase prioritizes creditors with claims of $50,000 or less, aiming to fully repay these "Convenience Class" claims along with 9% annual interest calculated from November 11, 2022.

To facilitate these repayments, FTX has partnered with crypto firms Kraken and BitGo. Creditors are required to complete know-your-customer (KYC) verification, submit necessary tax forms, and onboard to either Kraken or BitGo through the FTX Debtors' Customer Portal.

In August 2024, a U.S. court mandated FTX to pay $12.7 billion to customers and fraud victims, marking the largest recovery in the Commodity Futures Trading Commission's history. This substantial recovery has enabled FTX to offer significant repayments to its creditors.

However, some creditors have expressed concerns regarding the valuation of their claims. FTX's approach is to repay claims based on the value of cryptocurrencies as of the bankruptcy filing date in November 2022. Given the significant appreciation in cryptocurrency prices since then, this method has led to dissatisfaction among creditors who feel that their repayments do not reflect current market values.

Additionally, FTX has been actively seeking to recover funds to bolster its repayment pool. In November 2024, the FTX estate filed a lawsuit against Binance and its former CEO, Changpeng Zhao, aiming to recover $1.76 billion that was allegedly transferred fraudulently.

Overall, while significant progress has been made in repaying creditors, the process continues to evolve, with ongoing efforts to maximize recoveries and address creditor concerns.