FTX Begins Payouts to Creditors Under $50K: Recovery Could Reach $16B

FTX has started repaying creditors today (Tuesday), beginning with those in the “Convenience Class.” This group includes creditors with claims of $50,000 or less.These individuals will receive full repayment along with 9% annual interest accrued since November 2022. FTX has partnered with BitGo and Kraken to process the payments. Funds are expected to reach recipients within one to three business days after distribution begins.FTX Starts Creditor Payments Under Reorganization PlanEligible creditors must complete KYC verification and submit tax forms to receive payments. Those who miss the deadline can still qualify for later distributions.Creditors with claims exceeding $50,000 will receive payments starting in the second quarter of 2025. FTX plans to distribute $17 billion in total, with $7 billion allocated for the first phase, CCN reported.The repayments are part of FTX’s reorganization plan, which took effect on January 3, 2025. The plan follows a prolonged bankruptcy process and asset recovery efforts.Creditor Recovery Estimates Show 123% ReturnThe FTX Creditor Recovery Summary outlines total claims of $11.75 billion across various creditor groups. Recovery rates vary, with secured and customer claims ranging from 100% to 142%. Estimated total recoveries stand between $14.46 billion and $16.25 billion, resulting in an overall recovery rate of 123% to 138%.

Feb 18, 2025 - 11:22

FTX Begins Payouts to Creditors Under $50K: Recovery Could Reach $16B

FTX has started repaying creditors today (Tuesday), beginning with those in the “Convenience Class.” This group includes creditors with claims of $50,000 or less.

These individuals will receive full repayment along with 9% annual interest accrued since November 2022. FTX has partnered with BitGo and Kraken to process the payments. Funds are expected to reach recipients within one to three business days after distribution begins.

FTX Starts Creditor Payments Under Reorganization Plan

Eligible creditors must complete KYC verification and submit tax forms to receive payments. Those who miss the deadline can still qualify for later distributions.

Creditors with claims exceeding $50,000 will receive payments starting in the second quarter of 2025. FTX plans to distribute $17 billion in total, with $7 billion allocated for the first phase, CCN reported.

The repayments are part of FTX’s reorganization plan, which took effect on January 3, 2025. The plan follows a prolonged bankruptcy process and asset recovery efforts.

Creditor Recovery Estimates Show 123% Return

The FTX Creditor Recovery Summary outlines total claims of $11.75 billion across various creditor groups. Recovery rates vary, with secured and customer claims ranging from 100% to 142%. Estimated total recoveries stand between $14.46 billion and $16.25 billion, resulting in an overall recovery rate of 123% to 138%.