FTX has started repaying creditors today (Tuesday), beginning with those in the “Convenience Class.” This group includes creditors with claims of $50,000 or less.

These individuals will receive full repayment along with 9% annual interest accrued since November 2022. FTX has partnered with BitGo and Kraken to process the payments. Funds are expected to reach recipients within one to three business days after distribution begins.

FTX Starts Creditor Payments Under Reorganization Plan

Eligible creditors must complete KYC verification and submit tax forms to receive payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term. Those who miss the deadline can still qualify for later distributions.

Creditors with claims exceeding $50,000 will receive payments starting in the second quarter of 2025. FTX plans to distribute $17 billion in total, with $7 billion allocated for the first phase, CCN reported.

The repayments are part of FTX’s reorganization plan, which took effect on January 3, 2025. The plan follows a prolonged bankruptcy Bankruptcy Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Read this Term process and asset recovery efforts.

Creditor Recovery Estimates Show 123% Return

The FTX Creditor Recovery Summary outlines total claims of $11.75 billion across various creditor groups. Recovery rates vary, with secured and customer claims ranging from 100% to 142%. Estimated total recoveries stand between $14.46 billion and $16.25 billion, resulting in an overall recovery rate of 123% to 138%.

🚨 BREAKING 🚨

FTX has just sent a test transaction of 1 $BTC — repayments are starting today!

$16 BILLION is about to re-enter the crypto market.

Bullish momentum incoming for Bitcoin & Altcoins! pic.twitter.com/Is6y5DC5dY

— BitBull (@AkaBull_) February 18, 2025

Dotcom and US customer claims show higher recovery rates, while administrative and secured claims are fully covered. Variations in total recovery stem from factors such as postpetition interest and remission fund recoveries. Some claim groups could receive more than their original claims.

If repayments include cryptocurrency and creditors sell their holdings, it could add selling pressure to the market. However, most repayments are expected in cash, which may limit the impact on FTX’s native token, FTT.