- FTX will begin repayments on February 18, prioritizing Bahamas-based creditors with verified BitGo accounts.
- Settling FTX debts may stabilize affected crypto assets like FTT, SOL, and BTC.
Following CNF’s recent update on the FTX repayment schedule, which outlines a $16 billion distribution starting in January 2025, FTX is now taking its first major step toward repaying creditors after more than a year of uncertainty.
As shared in a recent tweet by Jacquelyn Melinek, FTX will begin distributing funds on February 18 to creditors who filed claims under $50,000.
NEW: FTX repayments to creditors are set to begin Feb 18, roughly 2 years and 3 months after its collapse.
— Jacquelyn Melinek (@jacqmelinek) February 4, 2025
This repayment process will be conducted through the crypto custody platform BitGo.
Who Qualifies for Repayments?
The initial wave of repayments will prioritize creditors based in the Bahamas, categorized under the “Convenience Class”. To receive payments, claimants must have a verified BitGo account, be listed on the FTX Digital Claim Portal, and resolve any account discrepancies by February 6 to avoid missing out on payments. Creditors outside the Bahamas will have to wait until March 4 to receive their funds.
FTX creditors have until February 6 to correct any account discrepancies or risk missing out on their payments. The first phase of repayments will start on February 18 for Bahamas-based creditors, while those outside the region will receive their payments starting March 4.
Once payments are processed, they cannot be reversed, making it crucial for creditors to update their bank details before the deadline.
Background on FTX’s Repayment Plan
FTX’s repayment process was officially approved in October 2024 as part of its reorganization plan. With $16.5 billion in recovered assets, the company is now executing its first major fund distribution.
Interestingly, about 98% of eligible creditors in this phase are based in the Bahamas, meaning most of the initial payouts will go to this group.
Impact on the Crypto Market
The FTX collapse had a significant impact on the broader crypto market, with multiple coins experiencing heavy losses. FTX’s native token (FTT) saw its price plummet following the exchange’s downfall. Solana (SOL) and Bitcoin (BTC)were also affected by the broader market downturn linked to the crisis.
Now that FTX is settling its debts, some of these affected assets could see renewed stability, offering a glimmer of hope for investors still recovering from the crash.
As of the time of writing, Bitcoin (BTC) is priced at $98,594.78, down 0.61% in the past day and 3.23% over the past week. See BTC price chart below.
