FTX Creditors To Begin Receiving Payouts From February 18

Three years after FTX went bankrupt, its creditors are finally going to receive payments. These payouts will begin as early as February 18, starting with claims under $50,000.

These early payments will only begin for creditors in the Bahamas process. Other categories of former FTX users will have a deadline of March 4 to receive payouts.

FTX To Begin Reimbursing Creditors

According to an email circulated among FTX creditors, they will begin getting reimbursed for lost assets. These payouts will begin at 10 AM ET on February 18 and will only apply to claims under $50,000.

According to this email, all repayments in this category will be processed through BitGo, a crypto custody platform.

“The Joint Official Liquidators of FTX are pleased to inform you that you have completed all the required steps to be eligible to receive a distribution related to your Convenience Class claim and that a payment will be made to your nominated account,” the email began.

Apparently, however, these early reimbursements will only go to FTX creditors in the Bahamas process. According to a creditor advocate, former users in other categories will begin receiving payments on March 4.

Since FTX went bankrupt in 2022, its substantial obligations to its creditors have weighed heavily on the crypto market. The lost cryptoassets have greatly appreciated in value since the collapse; creditors will, therefore, receive 9% interest per annum starting from November 11, 2022.

There are still several unanswered questions in this process, especially regarding FTX creditors outside the Bahamas process.

However, after months of positive signals, this is the largest concrete step towards recuperating the investors’ assets. This development will help close a chapter on one of crypto’s darker moments and rebuild overall confidence.