FTX Begins Paying Back Small Creditors on February 18

FTX, the once-thriving cryptocurrency exchange, is set to begin distributing funds to small creditors on February 18, marking a significant step in its ongoing bankruptcy proceedings. The Joint Official Liquidators (JOLs) of FTX Digital Markets Ltd. confirmed that creditors with approved Convenience Class claims, valued at $50,000 or less, will receive full repayment along with post-petition interest of 9% per annum.

The funds will be credited to verified BitGo accounts linked to the claimants’ registered email addresses, and a formal record of the payout calculations will be uploaded to the FTX Digital Claim Portal in the weeks following the distribution. Eligible claimants must confirm their BitGo account details through the portal before receiving their funds. The distribution will begin at 10:00 A.M. Eastern Time on February 18.

While this Convenience Class payout is a notable milestone in FTX’s bankruptcy proceedings, it does not resolve the larger claims that are still pending. Smaller creditors will receive 100% of their adjudicated claims, but larger investors, including institutional firms and venture capital backers, are awaiting a resolution that remains subject to legal disputes and asset recovery efforts.

The broader bankruptcy proceedings, led by FTX’s new management team under CEO John J. Ray III, have focused on asset recovery efforts, including legal action against former executives and third parties that allegedly benefited from the exchange’s mismanagement. The upcoming distributions come as FTX seeks to finalize its liquidation plan and return funds to creditors. However, larger claims remain subject to more complex legal and financial considerations, with negotiations continuing over the final distribution of remaining assets.