- FTX is emailing creditors under $50,000 about fund distributions.
- $345 million in claims remain pending due to incomplete KYC.
FTX has started notifying creditors with claims under $50,000 about their initial fund allocation. The exchange has emailed affected creditors, informing them of the next steps to receive their payments. Sunil, a representative of FTX creditors, confirmed this update in a recent X post.
FTX Claims
— Sunil (FTX Creditor Champion) (@sunil_trades) February 8, 2025
FTX are notifying claims <$50k via email
– Onboard with Distribution Service provider
– Creditors forego right to receive distributions directly from FTX
– Creditors directed distributors to pay their distribution
– FTX has credited the Distribution Service… pic.twitter.com/y8RLuvXD8v
The creditors will not receive payments directly from the exchange. Instead, they must onboard with BitGo or Kraken, the designated distribution service providers. FTX has already transferred the first batch of funds to these platforms. Creditors must authorize these providers to distribute payments on their behalf.
Despite this progress, $345 million in claims remain unverified due to incomplete KYC certification. Affected creditors must complete KYC to access their funds. Some users have also reported disputes regarding their claims on the FTX claims portal.
FTX to Begin Creditor Payments on February 18
FTX plans to start payments on February 18, 2025, at 10 a.m. ET. The distribution service providers will process all approved claims. Creditors will see pending transactions up to ten days before the official release date. However, funds will not be accessible until the scheduled payout time.
The Joint Official Liquidators (JOLs) instructed creditors to verify their BitGo accounts. They must ensure their Enterprise ID matches the FTX Digital Claim Portal details. Incorrect details could lead to delays or loss of funds. The deadline to correct errors was set for February 6, 2025.
FTX creditors owed under $50,000 will receive full repayment, plus 9% annual interest. The interest is calculated from November 11, 2022, when FTX collapsed, until February 18, 2025. A creditor owed $45,000 will receive thousands of additional payments based on accrued interest.
However, this is a one-time payout. The JOLs have confirmed that no second distributions will follow. Any creditor failing to complete KYC or resolve issues before February 6 risks losing access to their funds. FTX’s repayments offer closure to affected creditors, but the damage to the industry remains.
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