FTX Digital Markets, the Bahamian arm of the collapsed cryptocurrency exchange, will begin repaying customers on February 18. Creditors in the “convenience class” category, those with claims under $50,000, will receive full repayment along with 9% annual interest since November 2022.
FTX has transferred funds to BitGo and Kraken, the two platforms responsible for distributing payments. Eligible customers should receive their money within three business days. However, the timeline for larger claims remains unclear.
The repayment follows FTX’s bankruptcy restructuring, which took effect on January 3. In total, the exchange could distribute over $16 billion to creditors if all claims are processed successfully.
FTX’s Collapse and Legal Fallout
Once a major player in the crypto industry, FTX collapsed in November 2022 after a liquidity crisis exposed an $8 billion shortfall. Former CEO Sam Bankman-Fried resigned and was later convicted of fraud, receiving a 25-year prison sentence.
Other former executives, including Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang, cooperated with authorities. Their cases concluded in 2024, with some receiving reduced sentences for assisting prosecutors.
FTX’s repayments mark a significant milestone in the exchange’s recovery process. However, customers must complete Know Your Customer (KYC) verification and tax filings to receive funds. The platform has warned users to beware of phishing scams impersonating its customer portal.
FTX Digital Markets will provide further updates on remaining distributions in the coming months.
