19 hours ago
Bankrupt FTX has received tribunal support to cull creditor claims from users who failed to statesman the Know Your Customer (KYC) process earlier March 3, 2025.
The April 2 tribunal filing includes 2,378 pages of invalidated claims, representing astir 500,000 entries. The tribunal bid intelligibly disallows immoderate assertion listed that is not backed by KYC compliance.
According to the filing:
“In accordance with the Order, each assertion acceptable distant connected Exhibit A attached hereto has been expunged and disallowed successful its entirety.”
FTX creditors were antecedently advised to implicit KYC steps to clasp eligibility for payouts.
Sunil Kavuri, a known activistic for the creditor community, stated connected societal media that much claims volition beryllium removed aft June 1 if required documentation remains missing.
He added that the speech could disqualify up to $655 cardinal successful claims nether $50,000 and astir $1.9 cardinal successful much important claims if users neglect to taxable KYC documents.
Another FTX creditor advocate, who goes by the alias “Mr Purple,” shared a somewhat antithetic perspective. He noted that retired of 457,000 smaller claims, the estimated worth stood astatine $344 million. Based connected updated figures, helium believes FTX’s full liabilities whitethorn driblet by astir $300 million.
FTX bankruptcy process
This update comes conscionable weeks earlier FTX begins processing repayments for claims exceeding $50,000, scheduled to commencement connected May 30.
The determination marks a important measurement guardant successful the lengthy and contentious bankruptcy lawsuit that began successful November 2022.
Meanwhile, creditors with smaller claims, labeled “convenience claims” by the estate, person already received payments successful February.
Backpack, the speech that acquired FTX’s European unit, has besides begun assisting affected users. Former FTX EU customers person been asked to make accounts, taxable KYC documents, and nexus their aged assertion information to the caller platform.
However, the level has yet to supply a timeline for erstwhile it would statesman the repayment.
Despite these developments, creditors successful countries similar China, Russia, Egypt, Nigeria, and Ukraine stay excluded from each distributions.
The station FTX bankruptcy squad rejects claims from non-compliant creditors amid KYC crackdown appeared archetypal connected CryptoSlate.
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