Reported by Ayesha Aziz

Nearly 400,000 former FTX users may lose access to over $2.5 billion in repayments if they don’t complete identity verification by June 1. A recent filing in the U.S. Bankruptcy Court for the District of Delaware showed that roughly 392,000 people failed to begin the required Know Your Customer (KYC) process before the original March 3 deadline. The court has now extended that deadline, giving users one last chance to verify their identity.

The filing confirms that anyone who hasn’t started the KYC process by 11 a.m. UTC on June 1, 2025, will have their claim removed and disqualified. These disallowed claims span 2,377 pages of court documents. If users miss the new deadline, they forfeit the right to any repayment—regardless of how much they are owed. Claimsunder $50,000 could total around $655 million, while claims over that amount could reach $1.9 billion, putting more than $2.5 billion in repayments at risk.

The next round of repayments is scheduled for May 30, 2025. According to the court documents, FTX plans to distribute over $11 billion to creditors with claims over $50,000.

Read full report: https://finance.yahoo.com/news/400-000-ftx-users-face-003725962.html