In a major development for FTX creditors, the embattled crypto exchange has initiated repayments for claimants with losses under $50,000. Crypto activist Kavuri revealed in an X post that FTX began distributing payments on February 18, 2025, at 10:00 a.m. (ET), marking a significant step in the long-awaited reimbursement process.
Today FTX Repayments: Claims <$50k
— Sunil (FTX Creditor Champion) (@sunil_trades) February 18, 2025
1st Distribution: 18 Feb 2025, 10am ET
Claims < $50k: $1.2bn (120.5%)
~ $800m out of $1.2bn to be paid
~ 162k out of 460k est. allowed claims
Approx.
50% Original Holders: $400m
50% Claim buyers: $400m
$1.2 Billion Allocated for Small Claims
FTX has set aside a total of $1.2 billion to compensate creditors with claims below $50,000. In the first round of payments, $800 million was disbursed, covering 162,000 accounts—equivalent to 35.21% of the 460,000 eligible claims. Notably, payments were evenly split between original FTX account holders and claim buyers, with each category receiving $400 million.
Next Payment Schedule Announced
Kavuri also outlined the upcoming repayment schedule. Creditors with claims exceeding $50,000 must be officially recognized by April 11, 2025, to confirm their eligibility for reimbursement. Payments for these larger claims, along with remaining smaller claims, will commence on May 30, 2025.
This phased approach aims to ensure a systematic and transparent distribution process as FTX navigates its bankruptcy obligations. The exchange, once a titan in the crypto space, collapsed in late 2022, triggering a financial crisis that left thousands of investors stranded.
Road to Repayment
FTX’s downfall led to prolonged legal battles, culminating in an approved reorganization plan in October 2024. Under this plan, the exchange is set to distribute a total of $13 billion to creditors, with the $1.2 billion allocated to small claims representing 9.23% of the total repayment pool.
Leading crypto exchanges BitGo and Kraken have been entrusted with handling the payouts, ensuring secure and efficient transactions.
Meanwhile, FTX’s founder, Sam Bankman-Fried, is serving a 25-year prison sentence for fraud related to the exchange’s collapse. Although he has admitted to financial misconduct, he deems the sentence excessive and has filed an appeal in hopes of securing a reduced term.
Also Read: FTX to Begin Creditor Repayments on February 18, 2025, with 9% Interest – What Creditors Can Expect
As the repayment process progresses, FTX creditors remain hopeful that they will recover their lost assets, marking a potential turning point in the saga of one of crypto’s biggest downfalls.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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