The post FTX Cancels Nearly 392,000 Customer Claims Over KYC Failure appeared on BitcoinEthereumNews.com.

FTX cancels 392,000 claims after KYC deadline passes, worth $2.5B It eliminates $2.5b claims due to KYC noncompliance The Exchange focuses on Unresolved Claims for May 2025 Payment FTX, the bankrupt crypto exchange, has recently canceled a massive number of customer claims due to failure to complete required identity checks. The April 2 U.S. Bankruptcy Court filing for the District of Delaware disclosed FTX’s disqualification of nearly 392,000 claims worth $2.5 billion. FTX Cancels $2.5B in Claims After KYC Deadline Passes FTX eliminated these disqualified claims after its users failed to meet the KYC (Know Your Customer) verification requirement set for March 3, 2025. Financial institutions need legal approval through KYC verification to establish user identities. Unverified customers are ineligible to receive any funds from the bankruptcy estate assets. On the other hand, data show that non-compliance touched 2,377 pages of claims evidence resulting in a massive scope of disqualification. The initially estimated dollar amount for unprocessed claims reached $1 billion according to past reports. Sunil Kavuri who leads FTX creditor advocacy, asserts that the exact amount surpasses those previously estimated by other experts. Based on Sunil’s assessment, a total of $655 million was excluded for claims under $50,000 while additional $1.9 billion larger claims were removed. The overall number tops $2.5 billion. The combined value of these amounts exceeds $2.5 billion as it diminishes the pool of eligible creditors seeking repayment. In addition, the assets recovered by FTX amount to $11.4 billion so it can disburse this money to creditors. FTX will distribute funds according to the asset evaluations at the time of its market failure in November 2022. Furthermore, the payment procedure for future payments has already started its designated process. FTX Trading Ltd. and the FTX Recovery Trust provided a schedule when payments will be distributed during…

---

Filed under: News - @ April 5, 2025 10:15 pm