Catenaa, Monday, February 17, 2025 – FTX Digital Markets, the Bahamian subsidiary of the collapsed cryptocurrency exchange, is set to begin repaying creditors next week. The first batch of repayments will target “convenience class” creditors with claims under $50,000. These creditors are set to receive 119% of their adjudicated claim value, amounting to $1.2 billion.
Larger claims exceeding $50,000 will be addressed in future distributions, expected to start in Q2 2025, with an estimated $17 billion to be disbursed in stages. The initial payout for larger claimants is anticipated to be $7 billion.
However, creditors must complete Know Your Customer (KYC) verification, submit a W-8 BEN tax form, and onboard with designated distribution partners, BitGo or Kraken. Those who miss the February 18, 2025, deadline will be excluded from the first round but may qualify for subsequent distributions once outstanding requirements are met.
FTX’s reorganization plan, approved in January, prioritizes users with claims under $50,000, and up to 98% of affected users are set to receive 119% of their declared funds. The repayment process follows FTX’s bankruptcy after the exchange’s collapse in November 2022. The distribution is expected to total over $16 billion, providing vital compensation for creditors.
