FTX Users Risk Losing $2.5B as KYC Deadline Looms!

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FTX Extends KYC Repayment Deadline to June 1 for 400K Users

Approximately 400,000 users of the collapsed cryptocurrency exchange FTX could potentially lose a total of $2.5 billion if they don’t finish their required Know Your Customer (KYC) checks by the new deadline of June 1, 2025.

As per a recent court filing in the U.S. Bankruptcy Court for Delaware, approximately 392,000 creditors have yet to finish or even initiate the Know Your Customer (KYC) process. The initial deadline was March 3rd, but it has been extended to June 1st to provide creditors with additional time to confirm their identities and safeguard their claims.

By failing to initiate the Know Your Customer (KYC) process before June 1st, an individual risks having their claim irrevocably disqualified and forfeited. In other words, those who do not take action may find themselves completely missing out on any money they are entitled to receive.

The potential payouts are substantial. Accumulated debts below $50,000 amount to approximately $655 million that could be at risk, while those exceeding $50,000 might accumulate to a staggering $1.9 billion. In total, over $2.5 billion is potentially on the line.

1. FTX has removed or dismissed unverified claims made by users who did not complete the Know Your Customer (KYC) process before March 3, 2025.

2. If FTX does not receive KYC documents from additional users by June 25th, more claims will be expunged or dismissed.

3. FTX estimates that approximately $655 million in claims under $50,000 and $1.9 billion in claims exceeding $50,000 will be disallowed due to lack of KYC verification.

— Sunil (FTX Creditor Champion) (@sunil_trades) April 3, 2025

The upcoming repayment for FTX is set for May 30, 2025. In this installment, it’s anticipated that over $11 billion will be returned, with a significant portion going to users who have claims exceeding $50,000. According to FTX’s recovery plan, approximately 98% of creditors are projected to receive more than their original claim value in cash, with a return of at least 118%.

For those yet to complete the Know Your Customer (KYC) procedure, don’t worry, there’s still a path to move forward. Some users have encountered difficulties submitting their necessary documents, but they are encouraged to attempt resubmission. Sunil, from the FTX Customer Special Committee, recently posted on X (previously Twitter), suggesting that users who haven’t successfully completed KYC can restart the process.

If you’re encountering KYC issues with FTX, follow these steps:

1. Send an email to their support team at [support@ftx.com](mailto:support@ftx.com). Be sure to include a clear description of your issue in the email.
2. After sending the email, you’ll receive a response with a ticket number (which might be blanked out in your screenshot). Remember this ticket number, as it will help you keep track of your case.
3. To access your ticket, click on the provided ticket number in your email. This will direct you to their login page, where you can continue addressing your KYC concerns.

— Sunil (FTX Creditor Champion) (@sunil_trades) April 5, 2025

To proceed with that task, users should send an email to FTX Support at [support@ftx.com](mailto:support@ftx.com) to generate a ticket number. Once they have it, they’ll need to access the FTX support portal, create an account if they don’t already have one, and then re-upload all necessary KYC documents in that portal.

As a crypto investor, I can’t help but feel a sense of urgency. This might just be our final opportunity to reclaim what was rightfully ours. The clock is ticking, and it’s crucial we don’t let this chance slip away.

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2025-04-06 17:59