George Miller
The FTX cryptocurrency exchange, which is currently under bankruptcy proceedings, has revealed its intentions to begin settling debts owed to smaller creditors. Representative Sunil announced that repayments for claims of less than $50,000 are scheduled to start on February 18, 2025.
Insights on FTX’s Repayment Strategy
Creditors located in the Bahamas have received confirmation via email about the upcoming repayment timeline. Payments will begin promptly at 10:00 am Eastern Time on the designated date, with all claims being canceled once payments are fulfilled.
A noteworthy aspect of this repayment is the 9% annual interest, which will apply from the date FTX filed for bankruptcy (November 11, 2022) through to the repayment date. This provides creditors with additional funds as a form of compensation for the waiting period.
The interest accrued will be calculated daily, culminating in a repayment that encompasses both the initial claim and interest, offering some relief to affected creditors.
This initiative is expected to ease the burden for countless customers impacted by FTX’s collapse in November 2022, which had previously been the largest cryptocurrency exchange globally. The fallout from its bankruptcy created widespread turmoil in the cryptocurrency market, resulting in significant losses for many investors.
Although this move is encouraging for smaller creditors, how FTX will tackle the claims of larger creditors remains uncertain. The exchange has a challenging road ahead, focusing on navigating its bankruptcy and rebuilding customer trust.
Settling debts with smaller creditors is seen as a critical first move in this recovery phase, and FTX hopes to maintain this positive progress over the upcoming months.