Nearly 400,000 users of the bankrupt cryptocurrency exchange FTX face losing $2.5 billion in repayments if they do not complete the mandatory Know Your Customer (KYC) verification process by the new deadline of June 1, 2025. According to a recent court filing from the US Bankruptcy Court for the District of Delaware, approximately 392,000 creditors have not initiated the KYC submission process, which was originally due on March 3, 2025. Failure to comply by the extended deadline could result in their claims being permanently disqualified. Claims under $50,000 may account for about $655 million, while those above $50,000 could total approximately $1.9 billion, leading to more than $2.5 billion at risk. The next round of repayments is set for May 30, 2025, with $11 billion expected for creditors with significant claims. Users report difficulties with the KYC process, but they are allowed to resubmit applications to restart verification. This situation highlights the broader implications for the cryptocurrency industry following the FTX collapse, which impacted many other companies and market stability.

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