FTX Bahamas Creditors Set to Receive Repayments This Month

Convenience Class Creditors to Get 118% Compensation

Creditors of FTX Digital Markets with claims under $50,000 will start receiving repayments on Feb. 18, marking the first major payout since the collapsed crypto exchange entered bankruptcy proceedings in late 2022. These creditors, classified as Convenience Class claimants, will receive their repayments along with a 9% annual interest rate calculated from their claim value as of Nov. 11, 2022, according to a statement released Tuesday.

The repayment process follows nearly two years of complex restructuring efforts and legal proceedings, during which estimates of creditor reimbursement timelines have repeatedly shifted. In November 2024, the FTX estate projected that creditor payments would begin by March 2025. 

However, the latest update from FTX Digital Markets' liquidator, PwC, indicates that Convenience Class creditors in the Bahamas will now see compensation sooner than anticipated. These creditors, holding claims below $50,000, are set to receive approximately 118% of their original claim amount.

Larger creditors outside the Convenience Class bracket will have to wait longer. PwC had previously stated that these claimants can expect repayments to begin in the second quarter of 2025. Payments will be processed by digital asset custodian BitGo, which has been tasked with facilitating distributions to both individual and institutional creditors. These repayments will be issued in USD fiat currency, rather than cryptocurrency, as part of the structured liquidation plan.

FTX, once a dominant force in the cryptocurrency industry, filed for Chapter 11 bankruptcy on Nov. 11, 2022, in both Delaware, where its primary trading arm was based, and the Bahamas, where its subsidiary, FTX Digital Markets, was headquartered. The exchange’s collapse triggered widespread legal battles over asset recovery and creditor claims, with ongoing liquidation efforts aimed at maximizing repayments. While this marks a step forward for some creditors, the broader restructuring process remains far from complete.

This article has been refined and enhanced by ChatGPT.