FTX will dismiss claims of approximately $2.5 billion related to authentication errors

ChainCatcher news, according to DL News, FTX announced that approximately $2.5 billion in customer claims have been canceled due to nearly 400,000 users not completing identity verification (KYC) by March 3. According to documents from the Delaware bankruptcy court dated April 2, 392,000 claims have been completely dismissed and removed, involving up to 2,377 pages.

Although the initial estimate of unverified claims was about $1 billion, creditor representative Sunil Kavuri stated that the actual amount could exceed $2.5 billion, which includes $655 million in small claims and $1.9 billion in large claims.

These canceled claims are part of the total $33.6 billion in disputed claims that FTX expects to reject. FTX stated that this process is crucial for addressing the failures of the previous management in user data collection and due diligence.