Nearly 400,000 former FTX customers must verify their identities by June 1: $2.5 billion in refunds at risk.
According to U.S. bankruptcy court filings, 392,000 FTX creditors are at risk of losing $2.5 billion in cryptocurrency refunds as they have not completed the necessary Know Your Customer (KYC) identity verification to recover their funds.
The failed exchange initially required users to complete verification by March 3, 2025. Recognizing the scale of the issue, FTX administrators have extended the deadline to June 1, 2025, offering a final chance for affected users to qualify for repayment. Those who fail to meet the new deadline could lose their funds permanently.
Sunil Kavuri, a representative of a group of FTX creditors, suggests that the scale of these claims could be larger than initially projected, with around $655 million in smaller claims (under $50,000) and $1.9 billion in larger claims.
FTX’s legal representatives have emphasized the large volume of claims received. The new management reiterated that strict identity checks are crucial as they serve as protection against fraud and are a key element for distributing remaining assets fairly.
With $11.4 billion recovered from the bankruptcy, the exchange is preparing to begin refunds on May 30. Eligible users will receive payouts in fiat currency based on the market value of their holdings in November 2022.
