FTX Digital Markets Creditor Repayments

FTX Digital Markets creditors with claims up to $50,000, referred to as Convenience Class creditors, will start receiving repayments by February 18, according to a statement released on Tuesday.

Creditors will benefit from a 9% annual interest rate based on their claim value as of November 11, 2022, marking the first repayment to creditors after years of restructuring and repayment proposals.

In November 2024, the FTX estate estimated that reimbursements would begin by March 2025 for creditors with claims below $50,000, anticipating around 118% in compensation.

The liquidator for FTX Digital Markets, PwC, indicated that non-Convenience Class creditors expect to receive their reimbursements in the second quarter of this year. BitGo, the digital asset custodian, will facilitate these repayments for individual, institutional, and other creditors, with payouts made in USD fiat.

FTX filed for Chapter 11 bankruptcy protection on November 11, 2022. The bankruptcies occurred in Delaware, where FTX Trading is based, and in the Bahamas, where FTX Digital Markets is headquartered, as previously reported by The Block.

The Block has reached out to PwC for further comment.