- Nearly 400,000 FTX users risk losing a combined $2.5 billion in repayments due to failing to complete the required KYC process before the March 3 deadline.
- The KYC upload deadline has been extended to June 1, 2025, which gives users more time to verify their identity and maintain their claims.
- FTX plans to begin repaying creditors on May 30, with $11.4 billion already recovered to be distributed.
Almost 400,000 individuals who are owed money by the collapsed crypto platform FTX stand a chance to lose access to a combined $2.5 billion in repayments due to not starting the required Know Your Customer (KYC) process verification that was to end on the 3rd of March.
On the 2nd of April, a court filing by the U.S. Bankruptcy Court confirmed that about 392,000 customer claims for their money were fully rejected due to the fact that they didn’t meet the identity verification rules.
These denied requests cover 2,377 pages in the court records. The large drop in the total amount of claims may actually work in favor of those who followed the rules. With fewer requests to process, users who finished the required steps stand a chance to receive more money.
The court noted that the individuals that were affected failed to start the Know Your Customer (KYC) process before the March 3 deadline. According to the initial filing, any claim that was not stated by 4:00 p.m. (ET) on that date would be completely removed.
KYC Extension Offers as FTX Repayments Start in May
The deadline for the KYC verification has been extended to June 1, 2025. This gives users extra time to confirm their identity and secure their chance to receive their money back. Anyone who misses this new cutoff could have their claim fully removed.
Court records show that claims under $50,000 could add up to about $655 million, while creditors with $50,000 could total $1.9 billion. This puts over $2.5 billion at risk if this deadline is not met. FTX plans to start paying back its main group of creditors come May 30.
The company has promised full cash payments based on asset worth from November 2022, when the exchange platform collapsed. So far, $11.4 billion has been recovered to share. The road to this point has been rough, with the legal team reporting an overwhelming number of filings, some of which are false or overblown.
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