FTX Digital Markets, the Bahamian subsidiary of the defunct cryptocurrency exchange FTX, is finally initiating repayments to some of its creditors. More than two years after FTX’s dramatic collapse in November 2022, small-scale creditors will begin receiving payments on February 18, according to FTX creditor Sunil Kavuri.

Kavuri shared a distribution notice stating that creditors with claims under $50,000 will receive the full amount of their adjudicated claims, along with 9% annual interest accrued since the collapse. These payments will be processed via BitGo, a crypto custodian, though it remains unclear if Kraken, which is also involved in the repayment process, will follow the same timeline.

FTX’s total repayment obligations could exceed $16 billion, depending on the number of validated claims. This first round of payouts will conclude by early March, marking a major step in the exchange’s long and complex bankruptcy proceedings.

Once a dominant force in the crypto industry, FTX crumbled in just days due to a liquidity crisis that exposed widespread financial mismanagement. The fallout led to the resignation of CEO Sam Bankman-Fried, who was later sentenced to 25 years in prison for fraud and conspiracy. Several former FTX and Alameda Research executives, including Caroline Ellison and Ryan Salame, have also been sentenced for their roles in the scandal.

For many creditors, this long-awaited reimbursement provides partial relief—but for those who lost millions, the FTX disaster remains an unresolved financial catastrophe.