- FTX starts repaying claims under $50K on February 18, 2025, through BitGo and Kraken.
- Creditors must complete KYC, submit tax forms, and register for fund distribution.
- Unverified claims total $345M, and phishing scams remain a security risk.
FTX Exchange will begin repaying creditors on February 18, 2025. Those owed less than $50,000 will receive funds within three business days. This marks a major step in the long road to recovery. Many believed refunds would never happen. Now, justice moves forward.
How FTX Plans to Handle Repayments
Crypto Exchanges BitGo and Kraken will process the payments. Both firms serve as Distribution Service Providers, ensuring safe transfers. Refunds will reflect account balances from November 2022, when Bitcoin traded at $17,000. Every creditor will also receive 9% annual interest on lost funds. To claim a refund, each creditor must log into the FTX Customer Portal, complete KYC verification, submit tax forms, and register with BitGo or Kraken.
FTX has started emailing eligible users. Those who fail to verify their claims may experience delays. More than $345 million remains unverified, creating a potential backlog. Security remains a top priority. Scammers may send phishing emails disguised as official messages. The exchange will never request wallet connections. Every user should double-check email sources before sharing information.
What Next for Creditors?
This first phase focuses on smaller claims. Larger claims will follow in future distributions. Legal and financial teams, including Sullivan & Cromwell LLP and Alvarez & Marsal, continue to guide the process. More payout dates will be announced soon.
Transferred claims will only go to processed transferee holders who clear the 21-day notice period. FTX Digital Markets Ltd. will contact users who filed claims under that entity. BitGo and Kraken confirm they have received the necessary funds. Existing infrastructure will ensure quick and secure payments.
Once funds reach customer accounts, all support inquiries should go through the chosen Distribution Service Provider. February 18 brings long-awaited relief. Many waited over two years for this moment. While challenges remain, this repayment marks a step toward closure.
