FTX KYC Verification Deadline Extended, $2.5 Billion at Risk?
Jakarta, Pintu News – FTX users who fail to complete the Know Your Customer (KYC) process before June 1, 2025, risk losing the right to refunds worth a total of $2.5 billion. This announcement comes after a bankruptcy court in Delaware, US, extended the previous deadline on March 3.
Check out the full news below!
KYC Deadline Extension
The US Bankruptcy Court for the District of Delaware recently announced an extension of the deadline for the KYC verification process for bankrupt FTX users. Approximately 392,000 creditors have not yet started the mandatory KYC process.
With the new deadline of June 1, 2025, users are given one last chance to verify their identity and secure their claims.
According to Crypto Times, claims will be permanently disqualified and deleted if the KYC process is not initiated before the deadline. This means that users who do not act will lose the chance to get their money back. Claims under $50,000 amount to around $655 million, while claims above that amount can reach $1.9 billion.
Also read: Indian Start-up Creates Crypto Wallet Tracking Software for Police!
Repayment Process and Impact
FTX is scheduled to make its next round of payments on May 30, 2025. More than $11 billion is expected to be paid out, mainly to users with claims above $50,000. Based on FTX’s recovery plan, 98% of creditors are expected to return at least 118% of their original claim value in cash.
The large number of disqualified claims may allow eligible users to receive more as the pool of verified claims is smaller. Some users experienced technical issues during the KYC process.
To resolve this, they are advised to email FTX support to obtain a ticket number, log into the support portal, and re-upload their identification documents.
Read also: Mantra Invests Rp1.8 Trillion in RWA Crypto Project, Will it Change the Financial World?
Broader Implications for the Crypto Industry
The FTX bankruptcy, which involved more than 130 related companies, became a turning point in the cryptocurrency industry. Following the platform’s collapse, the price of Bitcoin dropped to almost $16,000.
While the repayment is not expected to drive major market movements, some believe some returned funds might be reinvested into the crypto market.
Former users and the wider industry are closely watching the repayment process. This marks a critical phase in the recovery efforts from one of the most impactful bankruptcies in cryptocurrency history.
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This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.
Reference
- Crypto Times. FTX Extends KYC Repayment Deadline to June 1 for 400k Users. Accessed on April 8, 2025
- Cointelegraph. FTX Creditors Risk Losing $2.5B Missing KYC Deadline. Accessed on April 8, 2025
- Yahoo Finance. 400,000 FTX Users Face…. Accessed on April 8, 2025
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