Two years after the shocking collapse of the cryptocurrency exchange FTX, the company is finally preparing to repay its first group of creditors, starting on February 18, 2025.
According to Sunil Kavuri—a creditor in the “convenience class” group—individuals with claims of less than $50,000 will be fully reimbursed for their losses along with 9% annual interest, calculated from November 2022. Custodian firm BitGo will handle these payments. However, it remains unclear whether Kraken—another platform involved in the repayment process—will follow the same timeline.
PwC, the entity overseeing the liquidation of FTX Digital Markets, stated that creditors with larger claims are expected to receive their payouts in Q2 2025. BitGo will process all payments in USD for individuals, institutions, and other creditors.
Related: FTX Sues Binance and CZ, Demanding Compensation of Up to $1.76 Billion
The total amount FTX needs to repay could exceed $16 billion if all creditors complete their claim filings. After years of recovering assets through legal proceedings, FTX’s restructuring plan officially took effect on January 3, 2025. The first group of creditors is expected to receive funds by early March.
While FTX Digital Markets’ initiation of creditor repayments signals that the two-year-long scandal is nearing its end, concerns remain over the payout process, particularly for larger claims. With more than $16 billion in obligations, FTX’s “legacy” continues to pose a significant burden on the cryptocurrency industry.
