FTX Repayments Begin After 27 Months

About $1.2 billion in customer assets trapped in FTX’s collapse finally began trickling back to creditors on Tuesday, marking the first repayments after 27 months of uncertainty.

For those affected by FTX’s swift demise in November 2022 and who lost less than $50,000, this moment marked a long-due reprieve. While some former customers may find closure in these repayments, Sunil Kavuri, an advocate for FTX creditors, notes that the journey is just beginning.

FTX’s bankruptcy estate still holds over $16 billion in assets intended for repaying creditors with claims exceeding $50,000 at a later date. Kavuri himself lost $2 million during the collapse and is determined to help others recover their assets.

Repayment Distribution Details

> **Claims 1st Distribution: February 18, 2025, 10 am ET
> Claims ~ $800m to be paid to ~ 162k out of an estimated 460k allowed claims.

Amidst the backdrop of a falling crypto market, with Bitcoin around $16,500, Ethereum at $1,250, and Solana at $16, Kavuri cautions creditors against taking high risks in an attempt to recover lost time.

Kavuri’s experience in FTX’s bankruptcy has been deeply personal and community-focused, having witnessed first-hand the emotional toll on victims of Bankman-Fried’s actions.

In the courtroom where Bankman-Fried was sentenced to 25 years in prison, Kavuri noted that many creditors had sold their claims to investment firms, often for as little as 10 cents on the dollar. He understands this decision is rooted in emotional distress.

As the bankruptcy process unfolds, Kavuri emphasizes caution for creditors handling their repayments. He encourages them to avoid impulsively seeking risky investments that could jeopardize their regained funds.

Edited by James Rubin