FTX is set to initiate creditor repayments for its Bahamas-based clients starting this month, with significant disbursements anticipated in the first quarter of 2025.
The repayment process will kick off on February 18, facilitated through BitGo, one of FTX’s chosen partners during its bankruptcy proceedings. A spokesperson for the primary creditor group indicated that individual claims from Bahamas creditors will be limited to $50,000.
The court-approved reorganization plans took effect on January 3, mandating that creditor repayments commence within 60 days. Recent court filings revealed that the bankrupt crypto exchange has accessible payout reserves totaling $13 billion, although half of this amount is being reserved for disputed claims, leaving the exact sum available to Bahamas creditors unclear.
FTX, which once operated out of the Bahamas, faced a dramatic collapse in 2022 due to alleged corporate mismanagement and fraudulent activities linked to its founder, leading to significant financial turmoil.
Analysts estimate that FTX’s downfall resulted in a staggering $16 billion deficit, with restructuring administrators projecting that asset recovery efforts may continue until 2027.
In related developments, the founder has been convicted on numerous fraud charges and sentenced to 25 years in prison. He has since claimed judicial bias and sought a new trial, while his family has reportedly pursued a pardon.
Former associates of the founder have received reduced sentences and forfeitures of their FTX-acquired wealth.
