FTX invalidates $2.5 billion in claims for non-compliance with KYC... Repayments to start from the 30th of next month

It is reported that the bankrupt cryptocurrency exchange FTX has invalidated claims worth $2.5 billion (approximately 3.6537 trillion KRW) due to non-compliance with customer identity verification (KYC). FTX plans to start repayments to creditors who have completed KYC from the 30th of next month.

According to the cryptocurrency specialized media CryptoSlate on the 5th (local time), FTX announced in documents submitted to the Delaware Bankruptcy Court that it has fully rejected and deleted a total of 392,000 customer claims. This applies to customers who had not started KYC by the 3rd of last month. The list of invalidated claims amounts to a total of 2,377 pages.

Sunil Kavuri, representative of FTX creditors, said, "The invalidated claims are estimated to total $2.55 billion, including $655 million claimed by creditors with claims under $50,000 and $1.9 billion claimed by large creditors."

FTX stated, "A thorough review is necessary even now as past management did not conduct basic due diligence or collect user data."

The media added, "According to the materials submitted to the court, the bankruptcy process remains complicated, with a total of 2.7 quintillion false or exaggerated claim cases being filed."

Meanwhile, FTX has currently secured a total of $11.4 billion (approximately 15.6611 trillion KRW) and plans to repay creditors in full in cash based on the value at the time of bankruptcy in November 2022.