USDFTX Kicks Off Creditor Payouts, But KYC Issues Delay $345M in Claims
Small Claim Creditors Start Receiving Payments
FTX has begun distributing repayments to creditors, prioritizing those with claims under $50,000 in an effort to expedite relief for smaller claimants. Affected creditors have been notified via email about their allocated funds as the exchange moves forward with its payout process.
Instead of handling payments directly, FTX has partnered with BitGo and Kraken to facilitate secure and efficient distributions. Funds are being transferred to these third-party service providers, ensuring a structured process that removes direct involvement from the defunct exchange.
However, creditors who have yet to onboard with BitGo or Kraken are being urged to complete the necessary steps immediately to prevent additional delays in receiving their payments.
Despite progress, a significant roadblock remains. Approximately $345 million in claims remain unverified due to creditors failing to complete Know Your Customer (KYC) verification. FTX has emphasized that KYC compliance is mandatory for all creditors before funds can be released, citing regulatory requirements and fraud prevention measures as key reasons for the strict policy.
Until the outstanding verifications are completed, these funds will remain inaccessible, prolonging the wait for many affected creditors. The exchange continues to push for swift KYC compliance, stressing that those who fail to meet the requirements risk missing out on their payouts.
With the repayment process officially underway, FTX’s decision to prioritize smaller claims aims to provide immediate relief to creditors facing financial uncertainty. However, the lingering verification issues mean that a significant portion of claims remains in limbo. As third-party facilitators manage the disbursement process, the urgency for creditors to finalize their KYC procedures grows, marking another hurdle in the long and complex road to recovery.
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