FTX Creditors to Finally Receive Payments

After three years of waiting, creditors of the bankrupt FTX are set to receive payments, starting as early as February 18. The initial payouts will cater to claims under $50,000 from creditors in the Bahamas process, with other categories of former FTX users having until March 4 to claim their reimbursements.

In a significant development, an email shared with FTX creditors outlines the commencement of reimbursements for lost assets. The repayments, scheduled to begin at 10 AM ET on February 18, will exclusively address claims under $50,000 and will be facilitated through BitGo, a trusted crypto custody platform.

The email from the Joint Official Liquidators of FTX states, "You have completed all the necessary steps to qualify for a distribution related to your Convenience Class claim, and a payment will be credited to your specified account."

Notably, the initial reimbursements are specific to FTX creditors involved in the Bahamas process, while other categories are expected to start receiving payments on March 4. With FTX's insolvency in 2022 significantly impacting the crypto market, the appreciating value of lost cryptoassets will see creditors benefiting from an annual 9% interest rate effective from November 11, 2022.

While uncertainties remain, especially for FTX creditors outside the Bahamas process, the upcoming payments mark a pivotal milestone towards recovering investors' assets. This progress signals a step forward in closing a challenging chapter in the crypto sphere and instilling renewed confidence across the industry.