The cryptocurrency exchange FTX has canceled claims from over 392,000 of its clients who did not complete the Know Your Customer (KYC) verification process by March 3, 2025. The total value of the canceled claims amounts to approximately $2.5 billion.
This is reported by Finway
KYC Issues at FTX
According to information provided by Sunil Kauri, one of the platform’s creditors, the claims of clients who did not complete the KYC process by the deadline are subject to cancellation. Kauri emphasized that all other clients must complete verification by June 1, 2025, or their claims may also be canceled.
“The total amount of claims from clients at risk of cancellation is about $2.55 billion,” Kauri stated.
It was also revealed that claims up to $50,000 total $655 million, while amounts exceeding this figure reach $1.9 billion. Kauri believes that more clients are likely to face cancellations in the future due to non-compliance with KYC requirements.
Compensation Payments to Creditors
It is worth noting that the previous deadline for completing KYC was set for March 1, but it was extended by two days. Many users reported difficulties in resubmitting documents on the exchange’s official website. Kauri published information on his page on how to resolve these issues:
“Process for resolving KYC issues and resubmitting documents.” For assistance, you need to email: [email protected] and receive a ticket number.
Kauri also reported that funds allocated to cover rejected claims will be returned to the general fund for further distribution. It was previously announced that FTX plans to start compensating major creditors on May 30, 2025.