FTX has disqualified nearly 400,000 customer claims after users failed to initiate identity verification by the March 3 deadline, potentially voiding up to $2.5 billion in claims due to noncompliance with know-your-customer (KYC) requirements.
An April 2 filing in the US Bankruptcy Court for the District of Delaware confirms that 392,000 claims have been “disallowed and expunged in their entirety.” These affected claims are detailed across 2,377 pages.
Initially, unverified claims were estimated at around $1 billion, but FTX creditor advocate Sunil Kavuri suggests the total may be significantly higher.
He estimates that $655 million in claims under $50,000 and another $1.9 billion in larger claims face disqualification due to KYC violations, exceeding $2.5 billion in total.
