#FTXrepayment

FTX Digital Markets has initiated the repayment process to its creditors, marking a significant milestone in the aftermath of its collapse. The first distribution, amounting to approximately $1.2 billion, commenced on February 18, 2025, targeting creditors with claims up to $50,000, referred to as the "Convenience Class." These creditors are expected to receive full repayment plus an additional 9% annual interest accrued since November 2022.

For creditors with claims exceeding $50,000, the next distribution is scheduled for May 30, 2025. To qualify for this round, creditors must have verified their claims by April 11, 2025. Under FTX's recovery plan, 98% of creditors are anticipated to receive at least 118% of their claim value in cash, with the total distribution estimated between $14.5 billion and $16.3 billion.

Repayment values are based on cryptocurrency prices as of November 11, 2022, the date FTX filed for bankruptcy, and are disbursed in U.S. dollars. The repayment process is facilitated by crypto exchanges Kraken and BitGo, requiring creditors to complete Know Your Customer verification, submit necessary tax forms, and onboard with either platform.

While these repayments signify progress, some creditors have expressed concerns about the repayment model, particularly the valuation date, given the significant appreciation in cryptocurrency prices since the bankruptcy filing.