FTX, the bankrupt cryptocurrency exchange, has announced plans to repay its smaller creditors. According to Sunil, a representative of FTX creditors, the exchange will start reimbursing creditors with claims under $50,000 on February 18, 2025.
FTX Key Details of the Repayment
The creditors in the Bahamas have received an email confirmation stating that they will commence on the above-mentioned date. The repayment process is scheduled to begin at 10:00 am Eastern Time on the mentioned date. Once the payments are made, the corresponding claims will be canceled.
The 9% per annum interest payment calculated from November 11, 2022, is a significant development for the creditors of the bankrupt exchange. This means that creditors will receive an additional amount of money as compensation for the delay in repaying their claims.
The interest calculation starts from the date when FTX filed for bankruptcy, November 11, 2022, and is calculated daily until the repayment date of February 18, 2025. As a result, creditors will receive a total repayment amount that includes the principal amount plus the interest, providing a measure of relief for those affected by the exchange’s bankruptcy.
This move is expected to bring relief to thousands of customers of the bankrupt exchange who were left stranded after the exchange filed for bankruptcy in November 2022. The collapse of FTX, once the largest cryptocurrency exchange in the world, sent shockwaves through the crypto market and left many investors facing significant losses.
While this development is a positive step for smaller creditors, it remains to be seen how FTX plans to address the claims of its larger creditors. The exchange still has a long way to go in terms of recovering from its bankruptcy and regaining the trust of its customers.
The repayment of smaller creditors is a crucial step in this process, and FTX will be hoping that it can build on this momentum in the coming weeks and months.
Also Read: Berachain Mainnet Launch Set for Feb 6
