FTX Confirms Debt Repayments to Begin February 18

FTX will begin repaying its global and Bahamian creditors on February 18, 2025, according to a new announcement from the exchange.

More than two years after the collapse of the FTX cryptocurrency exchange, the first creditors of FTX are about to be repaid. According to the latest announcement, the payment process will begin on February 18, marking an important step in the process of resolving the "aftermath" of this historic bankruptcy.

According to Sunil Kavuri, a creditor in the "convenience class" - those with claims under $50,000 - will receive the full amount of damages, along with 9% annual interest starting in November 2022. This process is carried out through the custody company BitGo. However, it is unclear whether Kraken, which is also participating in the FTX refund, will follow the same schedule.

Meanwhile, according to PwC, the liquidator of FTX Digital Markets, creditors outside the “convenience class” are expected to receive compensation in the second quarter of this year. Payments to individuals, institutions, and other creditors will be processed by BitGo in USD.

If all creditors complete their filings, the total amount FTX must pay could reach more than $16 billion. After years of litigation to recover assets from related companies, FTX’s restructuring plan officially took effect on January 3. The first group of creditors are expected to receive their money in early March.
FTT’s price is reacting positively to the debt repayment news, rising nearly 5% in the past 24 hours.

FTX was once one of the world's largest cryptocurrency exchanges, but in November 2022, the exchange suddenly declared bankruptcy after facing a severe liquidity crisis. Founder Sam Bankman-Fried (SBF) resigned and was sentenced to 25 years in prison in the US on multiple charges related to financial fraud.

At the sentencing hearing, Kavuri said he had suffered for the past two years and lost more than $2 million because of his involvement with the exchange.

Not only SBF, other former leaders of FTX and Alameda Research were also prosecuted. By the end of 2024, related criminal cases were also closed:

Caroline Ellison, former CEO of Alameda Research, and Ryan Salame, former co-CEO of FTX Digital Markets, received prison sentences of 2 years and 7.5 years, respectively.

Former FTX CTO Nishad Singh and FTX co-founder Gary Wang have been “freed from prison.”

The fact that FTX Digital Markets has begun repaying creditors could be seen as a sign that the two-year-old scandal is coming to an end. However, concerns remain about the payout process, especially for those with larger claims. With more than $16 billion to settle, FTX’s “legacy” remains a heavy burden for the crypto industry.