FTX has denied user claims worth millions over missing their Know Your Customer process by March 3, 2025. This follows an order by the US Bankruptcy Court to the company to publish the denied claims and expunge them from its list of liabilities. Although the company did not mention the worth of the claims, a user on X mentioned that it was worth $300 million.
According to reports, the exchange is still allowed to deny more claims. FTX Creditor champion Sunil Kavuri mentioned that FTX plans to expunge claims that fail to meet the KYC process by June 1, 2025, which is the deadline. Kavuri added that if all these claims are denied, it would save the company about $2.5 billion in liabilities. Meanwhile, the report of FTX expunging claims has attracted complaints and criticisms from creditors, who noted that they could not complete the KYC despite submitting all the documents.
FTX creditors in restricted countries are waiting for updates
Interestingly, the FTX administrator did not disclose how to spend the savings from the denied claims. However, the exchange plans to start the next phase of its repayment by May 30. The exchange’s European creditors are also likely to get their repayments soon after the company that acquired FTX Europe, Backpack, launched its claims page on April 1.
While creditors in the US and Europe are getting clarity on their repayments, creditors in over 160 countries excluded from the first phase of recovery were excluded from the first phase. Kavuri disclosed in February that the exchange had excluded several countries, including Nigeria, Egypt, Colombia, Russia, China, Ukraine, and Saudi Arabia, from the first phase of recovery and is working on a recovery solution for them. At the time, his post provided some clarity for the FTX creditors in these countries who have been waiting for the opportunity to get their refunds.
However, users in these countries are still waiting for repayment or any information on their status, with one creditor asking Kavuri for an update on when they will be paid. Since Kraken and BitGo, the two distribution options FTX has provided for its claims, are unavailable in most countries on the excluded list, it looks unlikely that they will be paid in May.