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FTX KYC Deadline Extended: 400,000 Users Risk Losing $2.5 Billion in Repayments
In a recent court filing, it has been announced that the deadline for Know Your Customer (KYC) verification on the FTX platform has been extended to June 1, 2025. The new deadline comes as a relief to nearly 400,000 users who have not started or completed the mandatory process.
According to the report, these users are at risk of losing access to a staggering $2.5 billion in repayments if they fail to complete the KYC requirement by the extended deadline. This is a crucial development for the crypto industry, as it highlights the importance of proper due diligence and data collection in the wake of FTX’s collapse.
The company’s current management team has implemented these measures as part of the bankruptcy proceedings following the failure of its previous leadership to collect key user data or conduct basic due diligence. As a result, the KYC requirement has been introduced to ensure that only legitimate claims are processed and validated.
For users who have already encountered difficulties with the KYC process, there is hope for redemption. Those who were unable to submit their documentation can restart the verification process by emailing FTX support at [email protected] to receive a ticket number. They will then be able to log in to the support portal, create an account, and re-upload the necessary KYC documents.
It’s worth noting that users who fail to complete the KYC process by the new deadline may have their claims permanently disqualified, effectively losing access to their funds entirely. This serves as a stark reminder of the importance of meeting deadlines in complex financial transactions.
FTX has made significant progress in its bankruptcy proceedings, with the first round of repayments already distributed earlier this year. The company aims to continue distributing funds to creditors with claims over $50,000 by May 30, 2025. This move is seen as a positive development for the industry, which continues to recover from the collapse of FTX and its more than 130 subsidiaries.
The incident sparked a prolonged crypto winter, during which Bitcoin’s price dropped to around $16,000. Despite these challenges, FTX remains committed to ensuring that all creditors receive at least 118% of their original claim value in cash.
In conclusion, it is essential for the nearly 400,000 users who have not started or completed the KYC process to take immediate action and complete the verification requirement by the extended deadline.
Source: https://blockonomi.com/ftx-kyc-deadline-extended-400000-users-risk-losing-2-5-billion-in-repayments/
