FTX Begins Creditor Repayments as Initial Fund Allocations Are Confirmed

• FTX will distribute payments through BitGo and Kraken, ensuring creditors receive secure transactions.
• $345 million in claims remain unverified due to incomplete KYC verification, delaying access to funds.
• Creditors owed under $50,000 will receive full repayment plus 9% annual interest accrued since November 2022.

FTX has initiated the process of compensating creditors with claims under $50,000, marking a significant step in its ongoing bankruptcy resolution. The exchange has notified affected creditors via email, detailing the necessary steps to receive their payments. Sunil, a representative of FTX creditors, confirmed this development in a recent X post.

Payments Processed Through BitGo and Kraken

Creditors will not receive direct payments from FTX. Instead, funds will be distributed through BitGo and Kraken, the designated service providers. The exchange has transferred the initial batch of funds to these platforms, requiring creditors to authorize them for disbursement. This onboarding process ensures that payments reach the rightful claimants securely.

Despite progress, $345 million in claims remain unverified due to incomplete Know Your Customer (KYC) procedures. Creditors unable to complete KYC will be unable to access their funds. Additionally, some users have encountered disputes over their claims on the FTX claims portal. These issues must be resolved before the final distribution to avoid forfeiture.

Payment Schedule and Verification Requirements

FTX is set to begin creditor payments on February 18, 2025, at 10 a.m. ET. Approved claims will be processed by BitGo and Kraken, with pending transactions visible up to ten days before the official release. However, funds will remain inaccessible until the scheduled payout time.

The Joint Official Liquidators (JOLs) have instructed creditors to verify their BitGo accounts to prevent delays. Enterprise ID details must match those on the FTX Digital Claim Portal. Errors in account information could result in payment failures, and the deadline for corrections was February 6, 2025.

Creditors with claims under $50,000 will receive full repayment along with 9% annual interest. Interest calculations began on November 11, 2022, the date of FTX’s collapse, and extend until February 18, 2025. For example, a creditor owed $45,000 will receive additional payments based on accrued interest.