Nearly 400,000 creditors of bankrupt crypto exchange FTX risk losing $2.5 billion in repayments for failing to initiate the mandatory Know Your Customer (KYC) verification process.
According to an April 2 court filing in the US Bankruptcy Court for the District of Delaware, approximately 392,000 FTX creditors have yet to initiate or complete the required KYC verification.
Originally, FTX users had until March 3 to initiate this process and claim their refunds.
The court filing states that if creditors did not initiate KYC filing by March 3, 2025, their claims would be rejected and removed entirely.
The KYC deadline has now been extended to June 1, 2025, giving users another opportunity to verify their identity and claim their entitlement.