Nearly 400,000 Creditors of Bankrupt CryptoCurrency Exchange FTX Risk missing with $ 2.5 billion payments after failing to start the mandatory process of verifying your customer (KYC).
Excessive 392,000 FTX Creditors failed to complete or at least take the first steps of the commanded Meet your customer Verification, according to a court of April 2 File in the US losses court for the Delaware District.
FTX users were originally until March 3 to begin the verification process to collect their claims.
“If a owner of a claim listed on Schedule 1 attached to it did not begin the KYC submission process with respect to the said claim or before March 3, 2025, at 4:00 pm (ET) (the” KYC that started the deadline “), 2 said claims will not allow and release in its entire
Ftx court filing. Source: Bloomberglaw.com
KYC’s deadline is expanded until June 1, 2025, giving users another opportunity to prove their identity and claim to be worthy. Those who do not find a new deadline may permanently not qualify their claims.
According to court documents, claims of under $ 50,000 could account for nearly $ 655 million in unallowed payment, while claiming more than $ 50,000 could reach $ 1.9 billion-carrying total funds at risk of more than $ 2.5 billion.
The FTX court filing, estimated claims. Source: Sunil
The next FTX Creditor Repayment will be set for May 30, 2025, with more than $ 11 billion expected to be paid to creditors with claims of over $ 50,000.
Under the FTX recovery plan, 98% of creditors expected to be received At least 118% of their original cash claim value.
Related: FTX is liquid of $ 1.5B in 3ac assets 2 weeks before the hedge fund collapse
How FTX users complete KYC
Many FTX users have reported problems with the KYC process.
However, users who have not submitted their documentation to the KYC may reinstate their application and restart the verification process, according to an April 5 x Post From Sunil, member of the FTX Creditor and Customer Ad-HOC Committee.
FTX KYC Portal. Source: Sunil
Affected users must email FTX (support@ftx.com) to receive a ticket number, after loging into the support portal, create an account, and re-upload the required KYC documents.
Related: Crypto trader turns $ 2k Pepe to $ 43m, selling $ 10m income
The Bahamian subsidiary of FTX, FTX digital markets, The first repayment of payments was processed in Februaryshares $ 1.2 billion in creditors.
The crypto industry is still recovering from the FTX collapse and more than 130 subsidiaries launched a series of insolvencies that led to the industry longest-ever winter cryptowho saw bitcoin (Btc) Price below around $ 16,000.
Although not a “catalyst that moves the market” on its own, the beginning of FTX’s payment is a positive sign for the maturation of the crypto industry, which may see a “significant part” resurrected in cryptocurrencies, Alvin Kan, chief operating officer officer in the Bitget Wallet, told the cointelegraph.
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