FTX Payouts in Jeopardy: $2.5 Billion at Risk Over KYC Delay

Court records show that close to 392,000 former FTX users have not started the Know Your Customer (KYC) process. If they do not act soon, they could lose the chance to claim their share of about $2.5 billion.

Initially, users had until March 3, 2025, to begin the identity verification needed to receive any repayments. A court notice explained that anyone who failed to start the process by that date would lose their claim entirely.

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However, the deadline has been pushed to June 1, 2025, which offers more time for users to complete the required steps.

Smaller claims—those under $50,000—make up around $655 million of the at-risk funds. Larger claims total about $1.9 billion, putting the total amount in danger at more than $2.5 billion.

This comes as FTX prepares its next round of payouts, scheduled for May 30, 2025. Around $11 billion is expected to be returned to those who are fully verified and have claims over $50,000.

Under the exchange’s recovery plan, most users are expected to receive at least 118% of what they initially lost, paid in cash. However, this will only happen for those who meet all the requirements, including KYC.

Meanwhile, Bitget $3.77B CEO Gracy Chen recently raised concerns about how Hyperliquid handled suspicious trading activity involving the JELLY token. What did she say? Read the full story.