FTX will begin repaying creditors owed less than $50,000 starting February 18, 2025, according to an announcement today from Sunil, a representative of FTX creditors. The payments will hit accounts through the BitGo platform and will cover 100% of approved claims under $50K, plus 9% interest per year calculated from November 11, 2022. The FTX Creditors , recognized as the “Convenience Class” in court proceedings, have been notified through official emails from the Joint Official Liquidators (JOLs). FTX creditors were told to verify their BitGo accounts before funds can be distributed. JOLs instructed them to confirm that their Enterprise ID, displayed in the BitGo account settings, matches the information provided in their payment email. This is important because funds will only be transferred to verified BitGo accounts listed on the FTX Digital Claim Portal, according to Sunil. But creditors who don’t fix any errors by February 6, 2025, are out of luck. “Once payments are processed, we cannot reverse them,” the JOLs reminded creditors in their emails sent today. If someone can’t access their original nominated bank account or if details have changed, they must act fast and contact the liquidators before the February 6 deadline. Otherwise, their funds could be locked in limbo. The 9% interest being added to claims is reportedly calculated for every day from November 11, 2022—the date FTX imploded—until February 18, 2025. This means a creditor owed $45,000 will get thousands of dollars extra, depending on the days accrued. But creditors cannot spend the funds until the official release date, even if their BitGo balance shows it as “confirmed” earlier. According to the email instructions, users may see the payment as a pending transaction up to 10 days before February 18. But those funds won’t be available to spend until 10 a.m. ET on the payment date. And no, FTX won’t be cutting any second checks—this is the “first and final distribution.” Cryptopolitan Academy: FREE Web3 Resume Cheat Sheet - Download Now
