Three years after FTX went bankrupt, its creditors are finally going to receive payments. These payouts will begin as early as February 18, starting with claims under $50,000.
These early payments will only reimburse creditors registered in the Bahamas. Other categories of former FTX users will receive payouts by March 4.
FTX To Begin Reimbursing Creditors
According to an email circulated among FTX creditors, they will begin getting reimbursed for lost assets. These payouts will begin at 10 AM ET on February 18 and will only apply to claims under $50,000.
According to this email, all repayments in this category will be processed through BitGo, a crypto custody platform.
“The Joint Official Liquidators of FTX are pleased to inform you that you have completed all the required steps to be eligible to receive a distribution related to your Convenience Class claim and that a payment will be made to your nominated account,” the email began.
Apparently, however, these early reimbursements will only go to FTX creditors in the Bahamas process. According to a creditor advocate, former users in other categories will begin receiving payments on March 4.
Since FTX went bankrupt in 2022, its substantial obligations to its creditors have weighed heavily on the crypto market. The lost cryptoassets have greatly appreciated in value since the collapse; creditors will, therefore, receive 9% interest per annum starting from November 11, 2022.
There are still several unanswered questions in this process, especially regarding FTX creditors outside the Bahamas process.
However, after months of positive signals, this is the largest concrete step towards recuperating the investors’ assets. This development will help close a chapter on one of crypto’s darker moments and rebuild overall confidence.
Sam Bankman-Fried is Appealing for a Retrial
Meanwhile, the FTX founder Sam Bankman-Fried is appealing to the court for a retrial. His legal team recently cited judicial bias in his sentencing, arguing that FTX customers ultimately didn’t lose any money.
The argument is based on Bankman-Fried’s earlier investments in companies like Anthropic, which have yielded massive returns. Had the company remained operational, all customers would have been able to recover their funds and investments.
At the same time, the former CEO’s parents are actively seeking a pardon from the new US President, Donald Trump. However, it might be unlikely, as Bankman-Fried was one of the largest donors to Trump’s opposition during the 2020 elections.
The FTX founder is currently serving a 25-year prison sentence in California.
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