FTX to dismiss over $2.5 billion in claims related to KYC noncompliance

Odaily News FTX disqualified nearly 400,000 customers from claims due to users’ failure to begin verifying their identities by a March 3 deadline, potentially resulting in up to $2.5 billion in claims being cancelled due to non-compliance with know-your-customer regulations.
According to a filing from the Delaware Bankruptcy Court on April 2, 392,000 claims have been completely dismissed and deleted, involving as many as 2,377 pages of content. Although the total amount of unverified claims was initially estimated to be approximately $1 billion, creditor representative Sunil Kavuri said the actual amount may exceed $2.5 billion, including $655 million in small claims and $1.9 billion in large claims. These canceled claims are part of a total of $33.6 billion in disputed claims that FTX expects to dismiss. FTX said this process is critical to making up for the failures of previous management in user data collection and due diligence. (DL News)