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Nearly 392,000 customers had their claims canceled due to not completing FTX's KYC verification.
Documents filed by FTX in the U.S. Bankruptcy Court for Delaware show that nearly 392,000 customer claims were canceled due to failure to complete KYC verification by March 3, totaling over $2.5 billion. FTX creditor advocate Sunil Kavuri estimates that this includes $655 million in small claims (under $50,000) and $1.9 billion in large claims, which is part of the estimated total claims to be canceled of $3.36 billion. FTX stated that this move was due to the previous management’s failure to collect critical user data. The company has raised $11.4 billion for distribution and will begin repaying major creditors on May 30, with full cash recovery based on asset values at the time of collapse in November 2022. (DLNews)