FTX Bahamas to begin creditor repayments on February 18

FTX Digital Markets, the Bahamian branch of the collapsed cryptocurrency exchange, is set to start repaying creditors on February 18, 2025.

This announcement follows a lengthy bankruptcy process that has left many users without access to their funds since the exchange's downfall in November 2022.

According to a post from creditor Sunil Kavuri, the first group of claimants, categorised as "convenience class" creditors with claims under $50,000, will receive 100% of their adjudicated claim value along with 9% interest per annum accrued since the bankruptcy filing.

The payments will be processed through BitGo, although it remains unclear if Kraken will follow the same distribution schedule.

Kavuri noted that losses for FTX (CRYPTO:FTT) users exceeded $65 million in just December 2024 and January 2025, with total estimated losses potentially reaching over $300 million annually due to ongoing scams and security lapses.

The Joint Official Liquidators confirmed that eligible creditors will receive their payments starting at 10 AM ET on February 18.

This initial distribution marks a significant milestone in FTX’s bankruptcy proceedings, which have faced numerous legal challenges and delays.

The reorganisation plan for FTX took effect on January 3, and while smaller creditors are set to receive their funds soon, larger claims remain unresolved and subject to ongoing litigation.

FTX was once a leading cryptocurrency exchange but collapsed after revealing serious financial mismanagement linked to its affiliated trading firm, Alameda Research.

Former CEO Sam Bankman-Fried has since been convicted of fraud and conspiracy, receiving a 25-year prison sentence.

 At the time of reporting, the FTX (FTT) price was $1.94.