FTX Repayments Kick Off February 18: Claims Under $50,000 Eligible

FTX's long-awaited repayment process is set to commence on February 18, 2025, with claims under $50,000 eligible for the first round of distributions. This marks a significant milestone in the crypto exchange's bankruptcy proceedings, offering relief to thousands of affected customers and creditors.



The Joint Official Liquidators (JOLs) of FTX Digital Markets Ltd. have announced the upcoming distribution of funds to creditors with Convenience Class claims, those under USD $50,000. According to a notice released by the JOLs, the first and final distribution for claims under $50,000 is scheduled to begin on February 18, 2025, with funds expected to be available from 10:00 AM Eastern Time.

Eligible claimants will receive 100% of the adjudicated claim value, capped at $50,000, as well as an additional amount representing post-petition interest of 9.0% per annum on the adjudicated claim value from the reference date of November 11, 2022, through the Initial Distribution Date. A formal record of the distribution and associated calculations will be uploaded to the FTX Digital Claim Portal in the weeks following the distribution.



To be eligible for the repayment, claimants must verify their BitGo account details through the FTX Digital Claim Portal. The funds will be credited to the BitGo Enterprise ID associated with their email address.

FTX, once one of the largest cryptocurrency exchanges, filed for bankruptcy in November 2022 following allegations of misuse of customer funds, mismanagement, and financial irregularities. The fallout from the collapse left billions of dollars in customer funds unaccounted for, leading to extensive investigations and legal proceedings.

The upcoming repayment process is a testament to the efforts of FTX's liquidators and the court-approved Chapter 11 bankruptcy plan. It is expected to provide much-needed relief to affected customers and creditors, while also signaling a step towards rebuilding trust in the crypto industry.

We invite our readers to share their thoughts and experiences regarding the FTX repayment process in the comments section below.