Nearly 400,000 FTX creditors face the potential loss of $2.5 billion in repayments due to incomplete Know Your Customer (KYC) verification processes. As of an April 2 court filing in the US Bankruptcy Court for the District of Delaware, approximately 392,000 users had not initiated the mandatory verification by the original deadline of March 3, 2025. The KYC deadline has since been extended to June 1, 2025, providing users a final opportunity to verify their identities to avoid permanent disqualification of their claims. Claims under $50,000 could total around $655 million in disallowed repayments, while those exceeding $50,000 may account for about $1.9 billion. The next round of repayments for FTX creditors is scheduled for May 30, 2025, with expectations of over $11 billion being repaid. Many users reported difficulties with the KYC process, but it is possible to resubmit documentation through FTX support if initial submissions were unsuccessful. This development is viewed as a positive sign for the crypto industry, which is recovering from the collapse of FTX and its subsidiaries.

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