FTX is set to begin repaying creditors based in the Bahamas on February 18, nearly three years after its collapse. This marks a significant step in the recovery process for those affected by the bankruptcy.

The first round of reimbursements will focus on claims under $50,000, known as the “Convenience Class.” Creditors eligible for this category will receive:

• The full value of their claims
• 9% annual interest calculated from November 11, 2022, up to the payment date

Payments will be managed by BitGo, a prominent crypto custody platform. Although transactions may show as pending for up to 10 days before the distribution date, funds will be accessible starting February 18. This initial payout is exclusive to creditors involved in the Bahamas liquidation process, while other former FTX users are expected to start receiving reimbursements on March 4. The recovery efforts have faced various legal challenges since FTX’s bankruptcy filing in 2022, further complicated by the fluctuating value of lost crypto assets. The inclusion of 9% post-petition interest aims to mitigate financial losses incurred during the bankruptcy proceedings.

📎 Related coverage from: cryptobriefing.com