In a significant announcement, the bankrupt cryptocurrency exchange FTX revealed its plan to initiate a total debt repayment of $16 billion on February 18, 2025. The initial phase of the repayment will involve disbursing between $6.5 billion and $7 billion. Payments will be calculated based on cryptocurrency prices from November 2022.
Initial Phase Will Distribute Up to $7 Billion
According to the team overseeing FTX’s bankruptcy process, the repayment program categorizes creditor groups. The initial phase will distribute a total amount between $6.5 billion and $7 billion among different creditors.
The repayment amounts will be based on asset prices at the November 2022 levels. FTX’s restructuring team will prioritize creditor groups, particularly focusing on customer claims and secured debts. Consequently, U.S. customers and other users will receive repayments at varying rates.
Priority Groups in the Repayment Process
Under FTX’s repayment plan, creditors are divided into different groups. Administrative claims and secured debts take priority, with these two groups set to receive full repayment amounting to $250 million.
Additionally, the payment distribution between Dotcom customers and U.S. customers is noteworthy. A planned repayment of $7.9 billion is designated for Dotcom customers, while U.S. customers are expected to receive $8.8 billion.
FTX will also address claims related to cryptocurrency loans and unsecured debts, though repayment rates for these will be lower compared to secured and administrative claims.
