This Error Could Deprive 400,000 FTX Investors Of Their Money
The FTX saga continues to shake the crypto ecosystem. Nearly 400,000 creditors of the now-bankrupt platform risk losing their rights to reimbursement, estimated at more than $2.5 billion. The cause: the failure to comply with the mandatory identity verification process, the infamous KYC (Know Your Customer).
FTX: 400,000 crypto users risk losing $2.5 billion
In a court document published on April 2, 2025, the Delaware bankruptcy court confirms that creditors who did not initiate the KYC process before March 3, 2025, at 4 PM (Eastern Time) will have their claims utterly dismissed. According to estimates, claims below $50,000 amount to $655 million, while those exceeding this threshold total $1.9 billion. These amounts could be excluded from the next reimbursement plan of FTX scheduled for May 30, 2025, where more than $11 billion is to be distributed.
However, a stay has been granted. A new deadline is now set for June 1, 2025, offering a final hope to those who have not yet taken the step. Affected users can resume their KYC process by contacting FTX’s official support at the address [email protected]. They will need to create an account on the support portal, obtain a ticket number, and then resubmit their documents.
A deceptive reimbursement
The promise of FTX? A reimbursement of 118% of the initial value for 98% of creditors… but only for those who follow the rules of the game. Moreover, these reimbursements will not be made in crypto, but in dollars, based on the prices at the time of bankruptcy. As a result: a creditor in bitcoin will recover only about 20% of the current value… Better than nothing!
As the FTX judicial saga continues to captivate the ecosystem, this case serves as a golden rule reminder: in crypto, negligence comes at a cost. Between complex procedures, Sam Bankman-Fried’s clandestine transfer, strict deadlines, and depreciated dollar reimbursements, inattentive users may well see their hopes of compensation melt away like snow in the sun.
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The world is evolving and adaptation is the best weapon to survive in this undulating universe. Originally a crypto community manager, I am interested in anything that is directly or indirectly related to blockchain and its derivatives. To share my experience and promote a field that I am passionate about, nothing is better than writing informative and relaxed articles.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.