FTX Digital Markets Creditors to Receive Repayments Starting from February 18, 2025
A long-awaited breakthrough has finally arrived for the FTX Digital Markets creditors in the Bahamas. Those with claims under $50,000, known as ‘Convenience Class creditors,’ will begin receiving their repayments on February 18, 2025. This announcement comes after years of restructuring and uncertainty for the victims of the exchange’s bankruptcy.
In addition to their repayments, these small creditors will also receive around 118% of their initial claim as compensation for the extended wait and the discrepancy with the current value of the lost assets.
On the other hand, major creditors will have to wait until the second quarter of 2025 to receive their repayments, with no specific details disclosed regarding the amounts or terms.
An Initial Repayment Expected on February 18
The FTX Digital Markets creditors with claims under $50,000 will start receiving their repayments on February 18, 2025. They will benefit from an annual interest rate of 9%, calculated based on the value of their claim as of November 11, 2022, the date FTX filed for bankruptcy. This first wave of repayments coincides with the ongoing efforts of FTX’s judicial administration to settle the massive debts left by the platform’s collapse.
Increased Repayments for Small Creditors
Estimates from November 2024 suggest that creditors included in this initial repayment phase will receive approximately 118% of their initial claim. This overcompensation seeks to partially offset the losses suffered by clients during the wait for the liquidation of the remaining assets.
PwC, the liquidator of FTX Digital Markets, will manage the repayment process with the support of digital asset manager BitGo. The latter will be responsible for distributing the funds in US dollars to creditors, regardless of whether they are individuals, institutions, or businesses.
Major Creditors Will Have to Wait
While repayments will commence promptly for Convenience Class creditors, those with claims exceeding $50,000 will have to wait several more months. PwC has stated that this second repayment phase will take place in the second quarter of 2025, without disclosing specific details regarding the amounts or terms.
The collapse of FTX in November 2022, which involved a Chapter 11 bankruptcy filing in the US and a parallel process in the Bahamas, sent shockwaves throughout the cryptocurrency industry. Nearly two years later, the liquidation of FTX Digital Markets is progressing, but many creditors are still waiting for a complete resolution of the case.
