FTX Begins $1.2 Billion Repayment to Small Creditors After Bankruptcy

The collapsed crypto exchange has started its first distribution to claimants, with larger repayments expected later this year.

FTX's bankruptcy estate has initiated the repayment process, releasing $1.2 billion to creditors with claims under $50,000.
Payments include 9% annual interest accrued since November 2022 and are being distributed through Kraken and BitGo.
The total repayment program could exceed $16 billion, with larger claims set to be addressed in the second quarter of 2025.
Critics note that repayments are based on November 2022 valuations, leading to dissatisfaction among some creditors due to current higher cryptocurrency prices.
Advocates warn creditors to avoid risky investments, like Solana meme coins, with their recovered funds to prevent further financial losses.