FTX Begins $1.2 Billion Creditor Repayments Amid Controversy

On February 18, 2025, the bankrupt cryptocurrency exchange FTX began repaying creditors, distributing $1.2 billion to those with claims under $50,000. This repayment plan has drawn criticism as it values creditors' assets based on November 2022 prices, despite significant increases in cryptocurrency values since then, particularly for Bitcoin and Solana. Many creditors, who lost substantial amounts due to FTX's collapse, feel shortchanged by this method, which they argue does not reflect the current market value of their assets. The repayments are being facilitated through crypto firms BitGo and Kraken, with further distributions planned for April 11 and May 30. The FTX collapse, which triggered a significant downturn in the crypto market, still impacts many creditors who have reported severe financial distress. While the crypto industry is recovering, concerns about the volatility and regulation of exchanges persist.