FTX Wallet Transfers Bitcoin Prior to Repaying Creditors

A wallet linked to the now-defunct cryptocurrency exchange FTX transferred 0.3 Bitcoin, valued at about $29,000, through three distinct transactions early Monday, based on data from Arkham Intelligence. This transfer occurs as FTX is preparing to initiate the first repayments to creditors on February 18.

The rationale for these minor Bitcoin transactions remains unclear. Ethem Ozturk, co-founder of Muhabbit, who initially identified these transfers, suggests they could serve as test transactions to ensure a smooth process for larger payouts.

As per the most recent communication from Sunil Kavuri, representative for the primary cohort of FTX creditors, the firm is set to begin distributions to “convenience class” creditors with claims below $50,000.

FTX Repayments: 18 Feb 2025

Funds available from 10am ET
FTX Claims

FTX Creditors in the Bahamas process have email confirmation that repayments will start on 18 Feb 2025

9% interest per annum from 11 Nov 2022 pic.twitter.com/FrmDN4qiK7

— Sunil (FTX Creditor Champion) (@sunil_trades) February 4, 2025

Eligible creditors can expect to receive the full adjudicated value of their claims, along with a 9% annual interest calculated from November 2022, the month FTX filed for bankruptcy.

Repayments will be calculated based on cryptocurrency values converted to US dollars at the time of FTX’s bankruptcy in November 2022. Although FTX has recovered over $16 billion in assets, customers may face losses due to the recent increases in Bitcoin and Ethereum values.

The exchange estimates that around 98% of users will receive 119% of their claim amounts.

FTX’s reorganization plan officially became effective on January 3, and repayments are poised to commence soon. The first set of creditors is anticipated to obtain their reimbursements by early March.

FTX will disclose its future repayment plans for the remaining creditors.

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