FTX Begins Repaying Bahamas Creditors in 2025

FTX, the once-thriving cryptocurrency exchange, has announced that it will begin repaying creditors in the Bahamas with claims of up to $50,000 by February 18, 2025. This significant step marks a crucial milestone in the ongoing restructuring process following FTX's collapse in November 2022.

The Convenience Class creditors will receive a 9% yearly interest payment based on claim values established on November 11, 2022. The liquidator of FTX Digital Markets, PwC, has confirmed that these creditors will start receiving their payments before the originally expected payment date. The new schedule indicates that creditors will receive payments based on 118% of the original claimed amount, rather than the typical full repayment percentage.

FTX must obtain bankruptcy plan approval from the U.S. Bankruptcy Court before beginning its settlement activities. The plan officially came into effect on January 3, 2025, with the distribution record date for claim holders set on that day. Proceeds from larger claims will take longer to arrive after the conclusion of the distribution plan. PwC has announced that the repayment process will commence during the second quarter of 2025, with DST disbursing the payments through its custodial partner BitGo. Notably, the company will issue repaid funds in USD fiat currency under its liquidation plan, rather than using cryptocurrency.

The collapse of FTX in November 2022 initiated an extensive process of litigation regarding asset collection and the claims of creditors. The bankruptcy filing served essential needs for certain creditors, but the main restructuring tasks remain extensive. The upcoming repayments to creditors in the Bahamas signal a positive development in the ongoing efforts to resolve the FTX crisis.