The bankrupt Crypto Exchange FTX eliminated nearly 400,000 customer requests after users were unable to complete their identity verification requirements by the court-imposed deadline.
FTX removes nearly 400,000 unverified customer requests during the bankruptcy process
According to documents filed in the U.S. Bankruptcy Court for the Delaware District, approximately 392,000 customers have missed the March 3rd deadline and launched the “knowing the Customer” (KYC) process needed to verify claims and collect funds from the platform’s bankrupt properties.
As a result, FTX confirmed that these claims have been completely removed and dismissed in accordance with the court-approved procedures.
The move will significantly narrow down the pool of eligible creditors as FTX continues its complex bankruptcy proceedings after collapse in late 2022.
At its peak, the exchange had millions of global users, many of which left a freezing balance following a sudden explosion of the platform.
Eliminating these unfounded claims can significantly reduce the total liability on the property, which could lead to an increased proven client recovery.
FTX’s bankrupt real estate is currently in the process of evaluating the remaining creditor’s claims and asset restoration efforts. The property reportedly recovered billions of dollars in cash, crypto and other assets so far, and plans to begin distributions in the second half of 2025.
While many verified users are expected to receive a partial refund, the fate of those who missed the KYC deadline is sealed off as their claims are no longer entitled to recovery.
*This is not investment advice.
