FTX Digital Markets, a cryptocurrency exchange that made headlines in 2022 for its collapse, is finally set to kickstart repayments to creditors later this month. The Bahamian unit of the firm is reportedly gearing up to allocate cash to “convenience class” creditors starting on February 18, according to recent reports.
Sunil Kavuri, a creditor of FTX, revealed in a distribution letter that exchange users who made claims under $50,000 can expect to receive 100% of the adjudicated claim value along with 9% annual interest starting in November 2022. The email from the Joint Official Liquidators of FTX informed eligible creditors that payments will be made to their nominated accounts.
BitGo, a well-known crypto custody platform, will be handling the repayment process for FTX. It is important to note that transactions may show as pending up to ten days before the distribution date, but funds will be available on February 18.
However, only creditors involved in the Bahamas liquidation procedure are eligible for the first payout. Other former FTX subscribers will have to wait until March 4 to receive their refunds. Meanwhile, the founder of FTX, Sam Bankman-Fried (SBF), is currently serving a 25-year prison sentence on fraud charges related to the cryptocurrency exchange.
Despite SBF’s legal troubles, FTX users remain hopeful about receiving their funds in a timely manner. The repayment process is a significant step towards resolving the aftermath of FTX’s collapse and providing some relief to creditors who have been patiently waiting for their payouts.