In accordance with CNF’s recent update on the FTX repayment schedule, which details a $16 billion distribution starting in January 2025, FTX is now taking its first major step towards repaying creditors after over a year of uncertainty.
As stated in a recent tweet by Jacquelyn Melinek, FTX will initiate the distribution of funds on February 18 to creditors who have filed claims under $50,000.
NEW: FTX repayments to creditors are set to begin on Feb 18, approximately 2 years and 3 months after its collapse.
— Jacquelyn Melinek (@jacqmelinek) February 4, 2025
This repayment process will be facilitated through the crypto custody platform BitGo.
Who qualifies for repayments?
The initial round of repayments will prioritize creditors located in the Bahamas, categorized under the “Convenience Class”. To receive payments, claimants must have a verified BitGo account, be listed on the FTX Digital Claim Portal, and resolve any account discrepancies by February 6 to ensure they do not miss out on payments. Creditors outside the Bahamas will have to wait until March 4 to receive their funds.
FTX creditors have until February 6 to rectify any account discrepancies or risk missing out on their payments. The first phase of repayments will commence on February 18 for creditors based in the Bahamas, while those outside the region will receive their payments starting on March 4.
Once payments are processed, they cannot be reversed, highlighting the importance for creditors to update their bank details before the deadline.
Background on FTX’s Repayment Plan
FTX’s repayment process was officially approved in October 2024 as part of its reorganization plan. With $16.5 billion in recovered assets, the company is now implementing its first major fund distribution.
Interestingly, about 98% of eligible creditors in this phase are based in the Bahamas, indicating that the majority of the initial payouts will go to this group.
Impact on the Crypto Market
The collapse of FTX had a significant impact on the broader crypto market, with several coins experiencing substantial losses. FTX’s native token (FTT) witnessed a decline in its price following the exchange’s downfall. Solana (SOL) and Bitcoin (BTC) were also affected by the overall market downturn associated with the crisis.
Now that FTX is settling its debts, some of these affected assets may regain stability, offering hope to investors still recovering from the crash.
At the time of writing, Bitcoin (BTC) is valued at $98,594.78, representing a 0.61% decrease in the past day and a 3.23% decrease over the past week. Refer to the BTC price chart below.