FTX has rejected nearly 400,000 compensation claims
Date: 2025-04-07 Author: Oliver Abernathy Categories: BUSINESS
The claims were invalidated because users failed to complete the identity verification process by March 3. While the total value of the rejected claims was not disclosed, Sunil Kavuri, a spokesman for FTX’s largest creditor group, said the total is estimated to be around $2.55 billion. Of that, $665 million is for claims under $50,000, while $1.9 billion is for claims over $50,000.
According to Bloomberg, FTX’s new management believes mandatory verification of client accounts is necessary because the previous management failed to perform basic background checks and often failed to collect information about the origin of funds.
Liquidators are scheduled to begin issuing payments for claims exceeding $50,000 on May 30.
FTX's legal team noted that the total number of compensation requests is "27 quadrillion." However, a significant portion of these requests need to be thoroughly verified, and "billions" of these requests are likely to be false.
Earlier, in February 2025, FTX allocated $1.2 billion to compensate users whose assets were less than $50,000.
It is worth noting that on March 31, Terraform Labs (TFL), the company that manages the Terra ecosystem, also announced the launch of a portal for receiving compensation requests from affected users.
