FTX has confirmed its readiness to begin repayments for Bahamas creditors this month, ahead of larger disbursements expected in Q1 2025.
FTX Bahamas will start creditor repayments on Feb. 18 via BitGo, one of its distribution partners selected during bankruptcy restructuring hearings. Sunil Kavuri, a spokesperson for the largest FTX creditor group noted that individual Bahamas payment claims would be capped at $50,000.
The court-approved reorganization plans became effective from Jan. 3, requiring creditor repayments to begin within 60 days. Court filings showed that the defunct crypto exchange has $13 billion in payout reserves.
However, the estate has filed to withhold 50% of this amount for disputed claims. The total sum allocated to Bahamas creditors remains unclear.
Previously based in the Bahamas, FTX collapsed in 2022 under the leadership of its founder, Sam Bankman-Fried. Investigations uncovered corporate mismanagement and fraud, allegedly orchestrated by the one-time crypto tycoon.
Analysts estimate that FTX’s collapse created a $16 billion shortfall. Reorganization administrators, led by bankruptcy CEO John J. Ray III, anticipate that asset recovery efforts could extend until 2027.
Meanwhile, Bankman-Fried was convicted on multiple criminal charges, including fraud, and sentenced to 25 years in prison. He has since alleged judicial bias, requested a new trial, and his parents have reportedly sought a pardon from President Donald Trump.
Members of SBF’s former inner circle, such as former Alameda Research CEO Caroline Ellison, received lighter sentences and forfeited wealth gained while working for FTX.
