FTX Begins Repayments: First $50K Claims in 2025

FTX, the once-thriving cryptocurrency exchange, is set to initiate repayments to creditors with claims under $50,000 on February 18, 2025. This significant step is part of FTX's ongoing reorganization efforts to address the financial fallout from its 2022 collapse.

To ensure secure and efficient fund distribution, FTX has partnered with BitGo, a leading digital asset custody and security firm. BitGo's advanced infrastructure is expected to facilitate a smooth transfer and management of funds, minimizing potential delays or errors in the repayment process.

FTX has begun notifying eligible creditors via email, providing guidance on the repayment process. Creditors are advised to complete necessary procedures, including Know Your Customer (KYC) verification, to facilitate timely payments. It is important to note that creditors who have not completed KYC procedures account for approximately $345 million in claims.

FTX plans to address larger claims in subsequent phases, prioritizing smaller claims initially. The company has outlined a phased approach to debt repayment, with subsequent repayments to be announced as the process unfolds.