FTX, the once-dominant cryptocurrency exchange that collapsed in 2022, has finally begun repaying its creditors. This marks a significant milestone in the long and complex bankruptcy process. If you’re among the thousands waiting for your funds, here’s what you need to know about the FTX creditor repayments.
FTX creditor repayments: Who gets paid first?
According to creditor representative Sunil Kavuri, FTX has implemented a tiered repayment system:
- Claims under $50,000: Fully repaid at 120% of claim value (completed February 18)
- Claims over $50,000: Initial 72.5% payout (completed May 30)
- Remaining 27.5% plus potential interest (40-80%) to be paid between 2026-2027
What does the FTX bankruptcy repayment schedule look like?
The repayment process will occur in multiple phases:
| Timeframe | Payment | Eligible Claims |
|---|---|---|
| February 2024 | 120% | Under $50K |
| May 2024 | 72.5% | Over $50K |
| 2026-2027 | 27.5% + interest | Over $50K |
Why are crypto exchange payouts taking so long?
The FTX bankruptcy case involves:
- Complex asset recovery across multiple jurisdictions
- Legal challenges from various stakeholders
- Valuation disputes for cryptocurrency holdings
- Regulatory approvals needed for distributions
What creditors should do about their FTX claims
If you filed a claim:
- Verify your payment was received if eligible
- Keep documentation for tax purposes
- Monitor official communications for updates
- Consult a tax professional about repayment implications
FAQs about FTX creditor repayments
Q: When will I receive my full FTX repayment?
A: Smaller claims under $50K have already been fully repaid. Larger claims will receive the remaining 27.5% plus potential interest between 2026-2027.
Q: Why are some creditors getting 120% repayments?
A: The bankruptcy court approved this premium for smaller claims to expedite resolution for most affected users.
Q: How is the post-petition interest calculated?
A: Interest rates of 40-80% will be based on asset recovery success and final court determinations.
Q: What if I didn’t file a claim?
A: Unfortunately, the deadline has passed for new claims in the FTX bankruptcy case.
