FTX to Repay Creditors in a Significant Step for the Crypto Industry
After its watershed collapse, failed crypto exchange FTX is set to send roughly $1.2 billion in repayments to its first group of creditors.
FTX Digital Markets, the Bahamian unit of the firm, will begin disbursing initial repayments to users owed less than $50,000. These “Convenience Class” creditors are expected to receive 100% of their claim amount, plus 9% interest per year.
The repayments are based on the value of the creditors’ holdings as of the day the cryptocurrency exchange declared bankruptcy, almost three years ago. The $9 billion collapse of FTX followed a series of misrepresentations and mismanagement by the company’s leadership, marking a significant blow to the crypto and…
