FTX to Begin Bahamas Creditor Payments on February 18, Covering Claims Under $50K
FTX will start paying Bahamas creditors on February 18. The first phase covers claims under $50K. Other payments start March 4.
FTX will begin payments to its creditors in the Bahamas on February 18, 2025. The first phase will cover claims valued at $50,000 or less. BitGo, a crypto custody platform, will manage the distribution of recovered funds.
Bahamas-based creditors will be the first to receive reimbursements. The repayment process will follow a structured four-step system. Creditors must log into the claims portal, complete KYC verification, submit tax forms, and register with Kraken or BitGo for payment processing. Those who fail to complete these steps by January 20 may experience delays.
Additional Payments for Other FTX Creditors
Creditors outside the Bahamas process will start receiving payments on March 4. All eligible creditors will receive 9% annual interest on lost assets. The interest calculation dates back to November 11, 2022, based on asset values at the time of FTX’s collapse.
FTX has recovered up to $16.5 billion for creditor distribution. The repayment process was approved in October 2024 as part of a reorganization plan. The plan became effective on January 3, 2025. Bahamas creditors make up approximately 98% of those eligible for initial payouts.
Ongoing Legal Matters and Asset Recovery
Meanwhile, the parents of FTX founder Sam Bankman-Fried continue efforts to secure a pardon. They are engaging with key figures in Trump’s network. Legal experts note a rise in white-collar clemency requests, particularly under Trump’s influence. However, without strong public backing, Bankman-Fried’s chances of a pardon remain uncertain. His legal team is also appealing his 25-year fraud sentence.
FTX Debtors recently confirmed a settlement with K5 Global to assist in asset recovery. The financial terms were not disclosed, but K5 Global will support efforts to maximize returns for creditors. CEO John Ray III highlighted this agreement as a positive step in the exchange’s recovery. The settlement follows previous agreements, including one with LayerZero.
Impact of Crypto Market Fluctuations
Creditors will recover 118% of their claim value in USD. However, the calculation is based on crypto prices from November 2022. Market fluctuations could affect the real value of the distributed funds. Additionally, discussions with the U.S. Department of Justice regarding $1 billion in seized funds may impact the repayment timeline.
The outcome of this process will influence future crypto regulations and investor confidence. As FTX moves forward with creditor payments, the industry will closely monitor its impact on digital asset markets.
