Breaking: FTX to Begin Repayments to Creditors From February 18
The post Breaking: FTX to Begin Repayments to Creditors From February 18 appeared first on Coinpedia Fintech News
According to an email circulated among FTX creditors, they will begin getting reimbursed for lost assets. These payouts will begin at 10 AM ET on February 18 and will only apply to claims under $50,000. The FTX Creditors, recognized as the “Convenience Class” in court proceedings, have been notified through official emails from the Joint Official Liquidators (JOLs).
Payments To Begin Only For Bahamas Creditors
Notably, these early payments will only begin for creditors in the Bahamas process. Former users in other categories will begin receiving payments on March 4. According to the email, all repayments in this category will be processed through BitGo, a crypto custody platform.
“The Joint Official Liquidators of FTX are pleased to inform you that you have completed all the required steps to be eligible to receive a distribution related to your Convenience Class claim and that a payment will be made to your nominated account,” the email noted.
Creditors Need To Verify BitGo Accounts
FTX creditors need to verify their BitGo accounts before receiving payments. Payments will only be sent to verified BitGo accounts listed on the FTX Digital Claim Portal.
Creditors must resolve any discrepancies by February 6, 2025, or risk missing out on their funds. Once payments are processed, they cannot be reversed. If bank account details have changed, creditors must contact the liquidators before the deadline.
Creditors To Receive 9% Interest On Their Claims
FTX’s repayment process was approved in October 2024 as part of a reorganization plan. The plan became effective on January 3, 2025. The company has secured up to $16.5 billion in recovered assets for creditor distribution. Notably, Bahamas creditors account for about 98% of those eligible for initial payouts.
Ever since FTX went bankrupt in 2022, its substantial obligations to its creditors have weighed heavily on the crypto market. The lost crypto assets have greatly appreciated in value since the collapse. Creditors will receive 9% interest on their claims from November 11, 2022, until February 18, 2025. However, they cannot spend their funds until the official release date, even if their BitGo account shows the balance as “confirmed.”
FTX Settles with K5 Global; Bankman-Fried’s Parents Seek Pardon
After months of positive signals, this marks the biggest concrete step toward recovering investors’ assets. This development could close a troubling chapter in crypto’s history and help restore confidence in the market.
Recently, FTX also reached a settlement with K5 Global to help recover assets, though financial terms remain undisclosed. K5 Global will work to maximize returns for FTX stakeholders.
Meawhile, Sam Bankman-Fried’s parents are working to secure a pardon for him, reaching out to influential figures in Trump’s circle. However, without significant public support, Bankman-Fried’s chances for a pardon remain unclear. His legal team is also appealing his 25-year fraud sentence.
