FTX creditors in the Bahamas will begin receiving repayments on February 18, 2025, through BitGo, one of the designated distribution platforms.
According to court-approved documents shared by FTX creditor activist Sunil, individual claims from Bahamas-based creditors are capped at $50,000. The repayment process follows the restructuring plan that took effect on January 3, which requires distributions to start within 60 days.
Limited Funds and KYC Requirements
FTX has allocated $13 billion for creditor repayments, though half of this amount remains reserved for disputed claims. As a result, the exact portion available for Bahamas-based creditors remains unclear. Funds for eligible claimants will be accessible starting at 10 a.m. ET on February 18.
The first distribution phase will disburse approximately $800 million to claimants who have successfully completed the Know Your Customer (KYC) process. An additional $400 million will be distributed once pending KYC verifications are finalized.
Further reports indicate that around $345 million in claims are currently held due to incomplete KYC procedures. Notably, creditors are set to receive 9% interest per annum from November 11, 2022.
$1.2bn assuming all KYC is passed https://t.co/yNGjIsvFVA
— Sunil (FTX Creditor Champion) (@sunil_trades) February 4, 2025
Jurisdictional Restrictions on Repayments
Despite ongoing distributions, several jurisdictions remain ineligible for repayments through BitGo and Kraken, FTX’s designated platforms. An updated document released on January 16, 2025, states that 163 jurisdictions are restricted from receiving payments. This list includes Nigeria, Russia, Ukraine, China, Iran, Egypt, and Saudi Arabia.
FTX had initially acknowledged that users from these regions held accounts on the designated platforms but later reversed its stance, confirming their exclusion.
The exchange is reviewing its list of eligible jurisdictions and has indicated that modifications may be made.
Background and Legal Developments
FTX, once a leading crypto exchange, collapsed in 2022 following revelations of corporate mismanagement and fraudulent activities.
The platform was headquartered in the Bahamas under the leadership of founder Sam Bankman-Fried. Following his conviction on multiple fraud charges, Bankman-Fried received a 25-year prison sentence.
He has since challenged the ruling, alleging judicial bias, and has formally requested a retrial. Reports suggest that his parents have approached former U.S. President Donald Trump to seek a pardon.
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