FTX Digital Markets, the Bahamian arm of the collapsed crypto exchange, will begin creditor payouts on February 18, 2025, after a two-year delay. Claimants with under $50,000 in losses will receive full repayment plus 9% annual interest, marking a major step in FTX’s long-running bankruptcy saga.
FTX Bahamas Payout Plan: Who Gets Paid First?
According to creditor advocate Sunil Kavuri, the first round of repayments will prioritize smaller creditors:
- $800 million will be distributed immediately to claimants who completed KYC verification.
- Another $400 million will be available for those who pass KYC later.
- The total estimated payouts could exceed $16 billion, assuming all creditors submit valid claims.
Will All Creditors Be Made Whole?
While smaller creditors will receive full repayment with interest, larger creditors may face delays or partial recoveries. Kraken, which is assisting in fund distribution, has yet to confirm if it will follow the same timeline.
SBF Pushes for a New Trial Amid Repayments
As payouts begin, Sam Bankman-Fried (SBF) continues his legal battle, arguing that:
- FTX was not insolvent, as debtors are paying out 118% of claims.
- The exchange had valuable holdings in Crytpo firms (Anthropic, Aptos, Solana, Mysten Labs) that could have covered liabilities.
- Bankruptcy proceedings sold assets at bargain prices, worsening losses.
SBF is now seeking a new trial or an evidentiary hearing, claiming his conviction was unfairly influenced by omitted evidence.
The Final Chapter of FTX’s Collapse?
FTX’s collapse in November 2022 was one of the most dramatic in crypto history, wiping out billions in user funds. With bankruptcy proceedings nearing their conclusion, these payouts mark a turning point for creditors still waiting for restitution after two years of uncertainty.
While FTX’s payouts are a win for small creditors, the real concern lies in the precedent set for future crypto bankruptcies. The recovery of 118% for some creditors raises questions about how insolvency was handled, possibly strengthening SBF’s appeal case—a move that could reignite legal battles over FTX’s collapse.