FTX Digital Markets, the Bahamian arm of the collapsed cryptocurrency exchange FTX, will begin repaying creditors under the “convenience class” category starting February 18, 2025.
According to an official distribution notice, eligible claimants with adjudicated claims under $50,000 will receive full reimbursement along with 9% interest per annum from November 11, 2022.
The repayments will be processed through BitGo, a digital asset custody service, with funds becoming available starting at 10:00 ET (15:00 UTC). While the distribution may appear as a pending transaction in BitGo accounts up to 10 days prior, creditors will not have access to their funds until the official release date.
Notably, claimants are urged to verify their payment details on the FTX Digital Claim Portal before February 6, 2025, as the Joint Official Liquidators (JOLs) will not be able to reverse transactions once initiated.
FTX: Context and Background
FTX, once one of the largest cryptocurrency exchanges, collapsed in November 2022 following a liquidity crisis that led to its bankruptcy. Former CEO Sam Bankman-Fried resigned amid allegations of fraud and was later convicted and sentenced to 25 years in prison. Since then, FTX debtors have been working to recover and redistribute assets to affected users.
The Bahamas-based liquidation process is separate from the U.S. bankruptcy proceedings, which are also working toward reimbursing affected FTX users. FTX’s reorganization plan took effect on January 3, 2025, with the broader payout process expected to conclude by early March.
Payment Process and Security Measures
To prevent fraud, the JOLs emphasized that no banking details will be requested via email. Creditors should only provide their payment information through the official claim portal (https://digitalmarketsclaim.pwc.com/). Additionally, they have been advised to confirm that their BitGo account matches the Enterprise ID listed in the official email instructions.
Final Steps for Creditors
- Payments will be deposited in BitGo accounts and reflected as confirmed balances before February 18, but funds will not be spendable until the release date.
- Creditors must ensure their payment details are accurate in the FTX Digital Claim Portal before February 6, 2025.
- The final payout marks the conclusion of creditor claims against FTX Digital Markets under this category, with no further distributions expected.
With an estimated $16 billion in total claims against FTX, this first phase of repayments represents a critical step in compensating victims of one of the largest financial collapses in cryptocurrency history.
