#FTXrepayment

As of February 2025, FTX has initiated the repayment process to its customers and creditors, more than two years after its collapse in late 2022. The first distribution occurred on February 18, 2025, with subsequent payments scheduled for April 11 and May 30. The total amount to be distributed ranges between $12.3 billion and $15 billion, facilitated through cryptocurrency platforms such as BitGo and Kraken. Notably, 98% of customers are expected to receive approximately 118% of their claimed amounts, with some even receiving interest up to 9%.

The repayment plan, approved in October 2024, prioritizes customers with smaller claims of $50,000 or less, ensuring they receive their funds before larger claims are addressed later in 2025. FTX CEO John J. Ray III expressed confidence in the company's preparedness to execute these distributions effectively.

In August 2024, a U.S. court mandated FTX to pay $12.7 billion to customers and fraud victims, marking the largest recovery in the Commodity Futures Trading Commission's history. This ruling came five months after FTX founder Sam Bankman-Fried was sentenced to 25 years in prison on charges of fraud and conspiracy to launder money.

Additionally, in November 2024, the FTX estate filed a lawsuit against Binance and its former CEO, Changpeng Zhao, seeking to recover $1.76 billion. The lawsuit alleges that these funds were fraudulently transferred to Binance in July 2021 as part of a shares repurchase deal with FTX co-founder Sam Bankman-Fried.

The repayment process has also highlighted differing approaches in cryptocurrency bankruptcies. FTX is repaying in cash based on the value of crypto assets as of November 2022, whereas other platforms like Genesis Global are repaying in cryptocurrency, benefiting from recent market surges. This discrepancy underscores the complexities in valuing cryptocurrency claims during bankruptcy proceedings.

Overall, FTX's repayment efforts signify a significant step toward addressing the financial repercussions of its collapse and restoring trust within the cryptocur