FTX Rejects Nearly 400,000 Compensation Claims

The liquidators of the bankrupt exchange FTX disqualified at least 392,000 compensation claims as of April 2.

The invalidation of claims is due to violations of KYC requirements and affects users who did not initiate the identity verification process by March 3.

The firm did not specify the total value of the compensation for the disqualified claims. According to Sunil Kavuri, a representative of the company’s largest group of creditors, these claims are valued at $2.55 billion in total. Of this, $665 million pertains to claims under $50,000, and $1.9 billion to those over $50,000.

According to Bloomberg, the new management of FTX considers additional verification of customer accounts necessary, as the company previously failed to ensure basic checks and often did not collect data on the sources of funds.

On May 30, the liquidators intend to begin compensating claims over $50,000.

FTX’s lawyers noted that the firm received “27 quadrillion” compensation requests. Many require verification, and “billions” will prove to be false.

In February 2025, the exchange allocated $1.2 billion for compensating users with assets up to $50,000.

On March 31, the company behind the collapsed Terra ecosystem, Terraform Labs, will open a portal for receiving compensation claims from affected users.