The Bankrupt Crypto Exchange FTX Has Deleted Thousands of Customers' Claims! Here’s Why

The bankrupt cryptocurrency exchange FTX has eliminated nearly 400,000 customer claims after failing to meet the identity verification requirements set by the court deadline.

FTX is Deleting Approximately 400,000 Unverified Customer Claims in Bankruptcy Proceedings

According to the documents filed in the US Bankruptcy Court for the Delaware District, approximately 392,000 customers missed the March 3 deadline to start the "know your customer" (KYC) process required to verify their claims and recover funds from the platform's bankruptcy estate.

As a result, FTX confirmed that these claims have now been completely dismissed and rejected in accordance with court-approved procedures.

This move significantly narrows the pool of eligible creditors due to FTX's continued complex bankruptcy proceedings following its collapse in late 2022.

The exchange had millions of global users during its peak period, and many of them were left with frozen balances following the platform's sudden explosion.

The removal of these unverified claims could potentially increase recovery rates for verified customers, as total liabilities against the asset have now significantly decreased.

FTX's bankruptcy desk is currently in the process of evaluating its remaining creditor claims and asset recovery efforts. The property has reportedly recovered billions of dollars in cash, crypto, and other assets to date and plans to begin distributions in late 2025.

While many verified users are expected to receive partial refunds, the fate of those who missed the KYC deadline has now been sealed, and their requests are no longer eligible for any recovery.