FTX to Begin Repayments to Bahamas Creditors in February 2025

FTX has announced plans to begin paying back certain creditors in the Bahamas on February 18, 2025, starting with those who have claims under $50,000.

The payments, set to begin at 10:00 a.m. ET, are part of the exchange’s efforts to settle debts following its bankruptcy and reorganization process, which was approved in December 2024.

The first phase of FTX’s repayment initiative will focus on these smaller claims, with a clear intent to resolve and close out these obligations. This phase aims to restore some confidence among creditors who have been waiting since the exchange’s collapse.

The payments will reflect the value of claims based on November 2022 levels, around the time Bitcoin was valued at about $17,000. However, due to the cryptocurrency’s significant rise to approximately $100,000, creditors are missing out on substantial gains they would have seen had they been compensated sooner.

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To ensure the repayment process is secure and efficient, FTX has partnered with BitGo, a prominent firm specializing in digital asset security. This collaboration is meant to facilitate the smooth transfer of funds and avoid potential delays, maintaining trust with creditors.

This announcement comes more than two years after FTX filed for Chapter 11 bankruptcy, triggered by a liquidity crisis and the improper transfer of customer funds to its sister company, Alameda Research. The fall of FTX has led to major legal repercussions, including the conviction of founder Sam Bankman-Fried, who is currently serving a 25-year prison sentence.