FTX, the crypto exchange that collapsed in 2022, has officially begun repaying some of its creditors in the Bahamas today, February 18, 2025. This is a significant step in the liquidation process for FTX Digital Markets Ltd., but it only applies to creditors under the Bahamas liquidation proceedings. Here’s a breakdown of what’s happening:
Who Gets Paid First?
In this first round, only creditors in the Bahamas with claims under 50,000 USDT worth (“Convenience Class Creditors”) will receive payments. Those eligible should have received an email confirmation and can log into the FTX Digital Claim Portal to verify their payment details.
Source | X @sunil_trades
Big Catch: Payments Use 2022 Prices
FTX Digital Markets Ltd. has set aside funds for creditors in the Bahamas, distributing an initial $6.5 billion to $7 billion in this phase. Additionally, creditors will receive 9% interest per year, calculated from November 11, 2022, until the final distribution date.
However, all repayments are based on crypto prices from November 2022, when FTX collapsed. Back then, Bitcoin was around 16,000. Today, BTC is trading at 95,000, meaning that if you had 1 BTC on FTX in 2022, you’ll only receive $16,000 in cash plus the 9% interest, far below its current market value. Many creditors are frustrated, as they are missing out on the massive price increase.
What About Larger Claims?
Creditors owed more than 50,000 USDT worth, will have to wait. While $10.5 billion has been allocated for these larger claims, payments won’t begin until mid-2025 at the earliest, and no exact timeline has been provided.
How Does the Payment Process Work?
Source | claims.ftx.com
FTX is using platforms like BitGo to handle repayments for Bahamas-based creditors. If you are eligible:
- Log into your FTX claims account and confirm your payment details.
- Verify your BitGo account (check the Enterprise ID in your email).
- Expect a pending transaction in your BitGo account up to 10 days before the official payment date.
- Funds will be available starting at 15:00 UTC on February 18, 2025, though processing delays may occur.
Does This Apply to Creditors Outside the Bahamas?
No. This repayment is only for creditors under the Bahamas liquidation process. If you are part of another international claim, your payment timeline will be different, and no funds from this phase will be distributed to you.
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