Nearly 400,000 former FTX users may lose access to over $2.5 billion in repayments if they don’t complete identity verification by June 1.
Nearly 400,000 former FTX users may lose access to over $2.5 billion in repayments if they don’t complete identity verification by June 1. A recent filing in the U.S. Bankruptcy Court for the District of Delaware showed that roughly 392,000 people failed to begin the required Know Your Customer (KYC) process before the original March 3 deadline. The court has now extended that deadline, giving users one last chance to verify their identity.
The filing confirms that anyone who hasn’t started the KYC process by 11 a.m. UTC on June 1, 2025, will have their claim removed and disqualified. These disallowed claims span 2,377 pages of court documents. If users miss the new deadline, they forfeit the right to any repayment—regardless of how much they are owed. Claims under $50,000 could total around $655 million, while claims over that amount could reach $1.9 billion, putting more than $2.5 billion in repayments at risk.
The next round of repayments is scheduled for May 30, 2025. According to the court documents, FTX plans to distribute over $11 billion to creditors with claims over $50,000. So far, $11.4 billion has been recovered to be returned to users based on the value of their assets at the time of FTX’s collapse in November 2022. The first round of repayments began in February through FTX’s Bahamian subsidiary, FTX Digital Markets, which returned $1.2 billion to creditors.
Under the proposed recovery plan, 98% of creditors are expected to receive at least 118% of the value of their original claims in cash. The large number of disqualified claims may allow eligible users to receive more due to a smaller pool of verified claims.
Some users have reported technical issues during the KYC process. On April 5, Sunil, a member of the FTX Customer Ad-Hoc Committee, posted instructions on how affected users can reapply. They are advised to contact FTX support via email to obtain a ticket number, log into the support portal, and upload their identification documents again.
FTX’s bankruptcy, involving over 130 related companies, was a turning point in the cryptocurrency industry. Bitcoin’s price dropped to nearly $16,000 following the platform’s collapse. While the repayments are not expected to drive major market movements, some believe a portion of the returned funds may be reinvested in crypto markets. The current repayment process is being closely watched by former users and the wider industry.
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