FTX will reject approximately $2.5 billion in claims related to identity verification errors

On April 5th, according to DL News, FTX announced that it has cancelled approximately $2.5 billion in customer claims due to nearly 400000 users failing to complete identity verification (KYC) by March 3rd. According to a document from the Delaware bankruptcy court on April 2nd, 392000 claims have been completely rejected and deleted, involving up to 2377 pages of content. Although the initial estimate for unverified claims was around $1 billion, creditor representative Sunil Kavuri stated that the actual amount could exceed $2.5 billion, including $655 million in small claims and $1.9 billion in large claims. These cancelled claims are part of the total $33.6 billion in disputed claims that FTX expects to reject. FTX stated that this process is crucial in addressing the previous management's failures in user data collection and due diligence.