YEREVAN (CoinChapter.com) — Almost 392,000 FTX users may lose access to over $2.5 billion in FTX repayments if they fail to meet the FTX KYC deadline, now set for June 1, 2025. This update comes from an April 2 court filing in the U.S. Bankruptcy Court for the District of Delaware.
The court filing notes that these FTX users did not start the FTX KYC process by the initial March 3, 2025 deadline. According to the document,
“If a holder of a claim… did not commence the KYC submission process… on or prior to March 3, 2025… such claim shall be disallowed and expunged in its entirety.”
This decision directly affects users listed in Schedule 1 of the court filing. Their FTX claims may be permanently removed unless they complete the required identity verification.
FTX KYC Deadline Now Set for June 1, 2025
The FTX KYC deadline has been extended to June 1, 2025, giving unverified users more time to submit documentation. If they still do not begin the process, they will likely lose their FTX claims completely.
According to the court filing, the at-risk FTX repayments include $655 million from claims below $50,000 and $1.9 billion from claims over $50,000. The total exceeds $2.5 billion.
These FTX users form a large share of the creditor pool. Without completing FTX KYC, they will not qualify for current or future FTX repayments.
The next round of FTX repayments is set for May 30, 2025. These repayments apply to verified creditors with claims above $50,000. According to court documents, over $11 billion is expected to be distributed. Under the FTX bankruptcy plan, around 98% of FTX users are expected to receive at least 118% of their allowed claim amount, paid in cash. This plan is based on recoveries from FTX assets and legal claims.
However, only those who complete FTX KYC will receive these funds. Others will be removed from the distribution list. The FTX bankruptcy estate has emphasized that identity checks are mandatory.
How to Complete the FTX KYC Process
Many FTX users have reported issues with the verification process. Some have uploaded incorrect documents. Others have experienced errors in the FTX support system.
In an April 5 post on X, Sunil, an FTX creditor and member of the Customer Ad-Hoc Committee, explained the steps. First, users must email [email protected] and ask for a ticket number. Then they must log into the FTX support portal, create an account, and upload their documents again.
The FTX support team will then review the submission. If accepted, the user’s claim will be reactivated. Users must begin this process by June 1, 2025, or their FTX claims will be disqualified.
Previous Repayments by FTX Digital Markets
The first repayment round happened in February 2025, led by FTX Digital Markets, the Bahamian unit of the exchange. It returned $1.2 billion to verified FTX users.
These FTX repayments were part of a larger effort to recover funds after the platform’s collapse. The FTX bankruptcy impacted over 130 entities and contributed to a major downturn in the crypto market.
At one point, Bitcoin (BTC) dropped to nearly $16,000, marking the bottom of the market during the crypto winter triggered by FTX’s failure.
The FTX KYC deadline extension gives FTX users a second chance, but the consequences for missing it remain serious. All users listed in the filing must begin FTX KYC verification before June 1, 2025.
