Nearly 400,000 creditors of bankrupt cryptocurrency exchange FTX risk missing out on $2.5 billion in repayments due to failing to initiate the Know Your Customer (KYC) process. Initially, creditors had until March 3, 2025, to begin verification, but this deadline is now extended to June 1, 2025. Those who miss the new deadline may have their claims disqualified.

According to court documents, claims under $50,000 could be disallowed for a total of $655 million, while claims over $50,000 could reach $1.9 billion, cumulatively amounting to $2.5 billion at risk. The next repayment round is scheduled for May 30, 2025, with over $11 billion expected for creditors.

FTX users experiencing problems with KYC can resubmit documentation. Impacted individuals should contact FTX support to navigate the process. FTX's initial repayment phase in February distributed $1.2 billion to creditors. The industry continues recovering from FTX's collapse, marking a "crypto winter" that saw Bitcoin prices dip to around $16,000.