FTX Creditors in the Bahamas Set for Payments Starting February 18

• FTX to begin paying creditors in the Bahamas on February 18, 2025.
• Repayments for other creditors will begin on March 4 with 9% interest.
• FTX has secured $16.5 billion in assets to fund creditor repayments.

FTX has announced that it will start paying its creditors in the Bahamas on February 18, 2025. The first phase of payments will prioritize claims under $50,000. 

These payouts will be processed through BitGo, a well-known crypto custody platform, which will handle the distribution of funds. The move follows FTX’s court-approved repayment plan, which is part of the company’s reorganization strategy.

Payment Plan Details for Bahamas Creditors

The repayment process will be divided into two phases for the Bahamas-based creditors. The initial phase will begin on February 18 and cover claims valued at $50,000 or less. Payments for other creditors not based in the Bahamas will start on March 4. The general creditors will receive 9% annual interest on the value of their lost assets, dating back to November 11, 2022, when FTX collapsed.

FTX’s repayment plan was approved in October 2024 and took effect on January 3, 2025. To facilitate these repayments, the company has secured up to $16.5 billion in recovered assets. This amounts to a significant step in fulfilling FTX’s obligations to creditors, with a portion of the recovered funds used for this purpose.

Creditors need to complete several pre-distribution steps to qualify for payments. These include logging into the claims portal, undergoing KYC verification, submitting tax forms, and registering for payment processing through BitGo or Kraken. The repayment process is essential for stabilizing FTX’s financial situation following its collapse and ensuring that creditors are compensated.

Challenges in the Payment Process

Despite the efforts to pay creditors, challenges remain. Legal discussions regarding approximately $1 billion in seized funds by the U.S. Department of Justice may influence the repayment schedule. Additionally, fluctuations in crypto market prices, especially since the 2022 collapse, may affect the real value of the distributed assets.
FTX’s repayment system is expected to provide 118% of the value of claims for most creditors, although this calculation is based on crypto values from November 2022. As the process continues, FTX aims to return as much value as possible to creditors, ensuring a degree of recovery for those affected by the collapse.