The bankrupt cryptocurrency exchange FTX has announced plans to initiate a total debt repayment of $16 billion on February 18, 2025.
Initial Phase Will Distribute Up to $7 Billion
According to the representatives overseeing the bankruptcy process, the initial phase of the repayment program will focus on distributing an amount between $6.5 billion and $7 billion among different creditor groups.
Priority Groups in the Repayment Process
FTX’s repayment plan divides creditors into different groups. Administrative claims and secured debts take priority, with these two groups designated to receive full repayment amounting to $250 million. Dotcom customers are expected to receive $7.9 billion, while U.S. customers are anticipated to get $8.8 billion.
Additional Repayment Aspects
FTX will also address claims related to cryptocurrency loans and unsecured debts, with repayment rates for these lower than those for secured and administrative claims.
In conclusion, FTX has drawn attention to its debt repayment plans, aimed to be fully executed by 2025, with a focus on meeting client and creditor claims.
