February 18, 2025 — Embattled cryptocurrency exchange FTX has commenced its initial distributions to creditors in the Convenience Class, marking a major milestone in its ongoing Chapter 11 reorganization. The first payments began today, with eligible creditors—those with allowed claims of $50,000 or less—expected to receive funds within 1 to 3 business days.

The distribution process is being facilitated by digital asset custodians BitGo and Kraken, ensuring a smooth recovery process for both retail and institutional customers in supported jurisdictions. According to FTX’s Plan Administrator, John J. Ray III, this development reflects over two years of extensive efforts to recover lost funds and streamline repayments to creditors.

Market Response and Crypto Price Movements

As FTX’s initial distributions begin, the broader cryptocurrency market has shown mixed reactions. Major digital assets have experienced slight declines today:

  • Bitcoin (BTC): $94,072 (-1.67%)
  • Ethereum (ETH): $2,611.89 (-4.72%)
  • Solana (SOL): $161.73 (-9.48%)
  • Binance Coin (BNB): $631.75 (-5.37%)
  • FTX Token (FTT): $2.08 (-4.59%)

While these downward movements align with the start of FTX’s distributions, analysts caution against attributing the declines solely to this event. Broader market sentiment, macroeconomic factors, and ongoing developments in the crypto space all play significant roles in asset price fluctuations.

Next Steps for Creditors

FTX has assured creditors that additional distributions for other claim classes will follow in the coming months. The exchange has urged claimants to complete necessary steps such as Know Your Customer (KYC) verification and tax documentation submission to ensure the smooth processing of payments.

With FTX’s bankruptcy plan approved, the return of billions of dollars to creditors marks a crucial step toward resolving one of the most infamous collapses in crypto history. As the process unfolds, market participants will be watching closely to assess its broader impact on investor confidence and the cryptocurrency ecosystem as a whole.

For more updates on this developing story, stay tuned to HighwayCrypto.com.

FTX founder Sam Bankman-Fried arrives at Manhattan Federal Court on July 26, 2023.Michael M. Santiago/Getty Images

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