FTX Rejects Nearly 400,000 Claims Worth $2.5 Billion

[ABCbits]

FTX Rejects Nearly 400,000 Claims Worth $2.5 Billion – Here’s What Happened

FTX’s bankruptcy case has just taken a big step. Nearly 400,000 customer claims—worth up to $2.5 billion—have been rejected after users missed the March 3 deadline to verify their identities. This major disqualification shows how seriously the collapsed crypto exchange is now enforcing Know Your Customer (KYC) rules as it works through legal and financial cleanup... Read more here.

Edit: Changed news link, since previous one blocked by forum.


Looks like it's one big mess, since i doubt there are that many people who don't bother claim their losses. The news doesn't mention what will happen to unclaimed $2.5 billion either. Your opinion is greatly appreciated.

[Mr. Magkaisa]

      -     There are actually 400,000 customer claims, does this mean they didn't know that the deadlines were March 3? because if their answer is no, the fault is obviously theirs. Instead of pitying people, the mistake is also theirs.

But if they verified their identities, it's likely that not that many will be rejected for sure. But I hope they can fix it and recover it and give
them another chance in that matter.

[Zed0X]

The KYC verification has been extended to June 1, 2025. I don't agree that there should be a set deadline for the claims but I guess this is the best way to process the distribution faster. I think those legitimate claimants who will miss the deadline again will still have the legal remedy.

[TomPluz]

Well, there is nothing FTX people can do if those users do not care to do the required KYC...maybe a big chunk of this 400K users are made up of small accounts and they just decided to ignore communication from FTX. I actually received an email from FTX to do the KYC but since there was actually nothing in my account, there is no need to do the hassle. Now, it would be good to know what will happen to assets of the accounts that will not do the KYC...will it stay with FTX or maybe taken by the government to be included in its Bitcoin strategic reserve?

[Bobcrypto]

Any FTX users that really desire to get his/her refund should comply with FTX exchange directives, especially some of the users that has huge assets on the exchange. I think that there are no big deal complying with KYC requirements, except some users do not want to be identified through the exchange KYC options because they no much crypto assets on the exchange.
I just hope that FTX exchange can make the KYC requirements a little easier for all users to get their funds.

[ABCbits]

Well, there is nothing FTX people can do if those users do not care to do the required KYC...maybe a big chunk of this 400K users are made up of small accounts and they just decided to ignore communication from FTX.

It's certainly possible, although we get $6377 if we divide $2.5 billion with 392 thousand. It's not small amount, even if you live in Europe or US.

[bitterguy28]

Looks like it's one big mess, since i doubt there are that many people who don't bother claim their losses. The news doesn't mention what will happen to unclaimed $2.5 billion either. Your opinion is greatly appreciated.

they should extend the deadline they were the ones who inconvenienced people in the first place and now they are this strict i would not be surprised if people decided to just let it go and not try to get their money back because of how much a hassle it is

it is unfair and ftx will benefit again

[Z-tight]

I am not an ftx creditor, but i have read from some of their creditors that it was difficult for them to complete kyc and that they are unsure if they will be able to claim their funds. I do not know if ftx purposely makes the process difficult or if the problem is from the creditors in question.

[joniboini]

I do not know if ftx purposely makes the process difficult or if the problem is from the creditors in question.

I think both can be true. I can see myself being cautious doing KYC if they ask a lot of things, and there's no guarantee it will give me enough compensation for that. Obviously things will be different if I lose a million or another big amount. On the other hand, I can see FTX trying to make sure they don't have to repay the wrong customer or those with low volume because they prioritize those who lost big since that's where most of their money comes from. CMIIW.

[ABCbits]

I do not know if ftx purposely makes the process difficult or if the problem is from the creditors in question.

I think both can be true. I can see myself being cautious doing KYC if they ask a lot of things, and there's no guarantee it will give me enough compensation for that. Obviously things will be different if I lose a million or another big amount. On the other hand, I can see FTX trying to make sure they don't have to repay the wrong customer or those with low volume because they prioritize those who lost big since that's where most of their money comes from. CMIIW.

Not only that, different news media also mention team who perform KYC verification receive fake or inflated claim. Although i can see it's being used as excuse to make some creditor give up claiming their money.

[Z-tight]

Not only that, different news media also mention team who perform KYC verification receive fake or inflated claim. Although i can see it's being used as excuse to make some creditor give up claiming their money.

If this is true, then i hope most of the rejected claims are from people who tried to cheat the system with fake and inflated claims and not from genuine creditors who just want their money back. Many creditors were also strugglng to complete kyc and as for that i think it might be the fault of ftx.

[yhiaali3]

This is completely unfair. After waiting several years, these poor people lose their money again due to the expiration of the deadline or failure to complete the KYC verification.

I know that verifying all requests is a difficult task for the exchange because the number of claimants is so large, but late users should be given another chance. I heard that they extended the Customer Identity (KYC) verification period until June 1, so that's better.

As for the fate of the unclaimed $2.5 billion, it should be redistributed to users who completed verification, as they have lost a significant portion of their real asset value.

[Z-tight]

As for the fate of the unclaimed $2.5 billion, it should be redistributed to users who completed verification, as they have lost a significant portion of their real asset value.

Lol, you know that is not going to happen, they are not going to redistribute those funds to others users, i don't think they should either. I don't know exactly what will happen to those funds, but i believe they will keep it to themselves, just like when functional services confiscate people's funds.

[yhiaali3]

As for the fate of the unclaimed $2.5 billion, it should be redistributed to users who completed verification, as they have lost a significant portion of their real asset value.

Lol, you know that is not going to happen, they are not going to redistribute those funds to others users, i don't think they should either. I don't know exactly what will happen to those funds, but i believe they will keep it to themselves, just like when functional services confiscate people's funds.

Yes, they won't, but the judge must. FTX has no right to keep these unclaimed funds. This would be a second act of theft, especially for those unfortunate individuals who were unable to prove their identities.

The court must issue a decision to redistribute these funds to those affected who have completed all verification procedures, or confiscate them if they are not claimed. This is my opinion, but I don't know what US laws are in this regard. A judge cannot act outside the law.

[bitterguy28]

As for the fate of the unclaimed $2.5 billion, it should be redistributed to users who completed verification, as they have lost a significant portion of their real asset value.

Lol, you know that is not going to happen, they are not going to redistribute those funds to others users, i don't think they should either. I don't know exactly what will happen to those funds, but i believe they will keep it to themselves, just like when functional services confiscate people's funds.

Yes, they won't, but the judge must. FTX has no right to keep these unclaimed funds. This would be a second act of theft, especially for those unfortunate individuals who were unable to prove their identities.

The court must issue a decision to redistribute these funds to those affected who have completed all verification procedures, or confiscate them if they are not claimed. This is my opinion, but I don't know what US laws are in this regard. A judge cannot act outside the law.

now that i think about it it can be possible that the government just keeps it if it is not redistributed to the right people they really need to find a way to make it work otherwise no one is just going to benefit from all those money and i hope that those victims still get their money no matter how much of a hassle it has been because it is rightfully theirs anyway