The post Breaking: FTX to Begin Repayments to Creditors From February 18 appeared first on Coinpedia Fintech News
In a latest development, FTX is all set to begin repayments to creditors from February 18. According to an email circulated among FTX creditors, they will begin getting reimbursed for lost assets. These payouts will begin at 10 AM ET on February 18 and will only apply to claims under $50,000.
Notably, these early payments will only begin for creditors in the Bahamas process. Former users in other categories will begin receiving payments on March 4. According to the email, all repayments in this category will be processed through BitGo, a crypto custody platform.
“The Joint Official Liquidators of FTX are pleased to inform you that you have completed all the required steps to be eligible to receive a distribution related to your Convenience Class claim and that a payment will be made to your nominated account,” the email noted.
Ever since FTX went bankrupt in 2022, its substantial obligations to its creditors have weighed heavily on the crypto market. The lost crypto assets have greatly appreciated in value since the collapse; creditors will, therefore, receive 9% interest per annum starting from November 11, 2022.
After months of positive signals, this marks the biggest concrete step toward recovering investors’ assets. This development could close a troubling chapter in crypto’s history and help restore confidence in the market.