Failure to complete required KYC documents could cost some victims a lot of money
Nearly 400,000 former users of the failed crypto exchange FTX could lose out on more than $2.5 billion in repayments due to not starting the required identity verification process. According to a recent filing in the US Bankruptcy Court in Delaware, those affected have yet to begin or complete the Know Your Customer (KYC) process, which is necessary to claim their share of the company’s recovery plan.
Initially, the deadline to start the KYC process was March 3, 2025. That deadline has now been extended to June 1, 2025, giving users another window to verify their identities and maintain eligibility. Without doing so, their claims could be permanently removed.
Court documents show that around $655 million is tied to claims under $50,000, while another $1.9 billion is linked to claims over that threshold. Altogether, over $2.5 billion is at risk of going unclaimed.
FTX has been working on a recovery plan that would return more than $11 billion to creditors, including repayments scheduled to begin May 30, 2025. Most eligible users are expected to receive more than what they originally lost, with 98% projected to get back at least 118% of their claim amount in cash.
Some users have reported trouble with the verification process, but those who missed the earlier deadline can still take action. According to a customer committee member, users should email FTX support to open a ticket, then log into the platform’s support portal to upload the necessary documents and restart the process.
The collapse of FTX, which led to more than 130 related entities filing for bankruptcy, triggered a long downturn in the crypto market. While the repayments won’t fix the damage, they are seen as a step toward restoring confidence in the industry.
