FTX may dismiss claims of more than $2.5 billion related to KYC non-compliance

Mars Finance News: Due to users failing to begin identity verification by the March 3 deadline, FTX will cancel claim eligibility for nearly 400,000 customers, which may result in up to $2.5 billion in claims being canceled due to non-compliance with know-your-customer regulations. According to Delaware Bankruptcy Court documents dated April 2, 392,000 claims have been completely rejected and deleted, spanning 2,377 pages. Although initially estimated unverified claims totaled around $1 billion, creditor representative Sunil Kavuri stated the actual amount might exceed $2.5 billion, including $655 million in small claims and $1.9 billion in large claims. These canceled claims are part of the total 33.6 billion dollars of disputed claims FTX expects to reject. FTX stated that this process is crucial in addressing the failures of previous management in user data collection and due diligence. (DL News)