FTX Users Battle for $2.2B in Disputed Claims Amid Ongoing Bankruptcy Chaos

Cal Evans
FTX Settlement

Key Takeaways:

  • $2.25 Billion in FTX Claims Still in Limbo: Roughly 30% of all claims remain disputed, with Chinese creditors facing the longest delays.
  • KYC Verification Frustrates Users: Creditors report slow responses, intense scrutiny, and unclear timelines—especially for small claimants.

FTX’s bankruptcy saga continues to frustrate thousands of users, with at least $2.2 billion in creditor claims still awaiting resolution. Despite a second round of repayments underway, many users face delays due to KYC complications and jurisdictional uncertainties.

Disputed Claims Cloud Repayment Progress

Bankrupt crypto exchange FTX has made progress in repaying its creditors, with over $5 billion in digital assets disbursed in its second distribution round, which began on May 30. However, the path to recovery is far from over. According to Sunil, a member of the FTX Customer Ad-Hoc Committee, approximately $2.25 billion in claims remain disputed.

As per Sunil’s June 11 post on X, while $7.5 billion in claims have been officially approved, the estimated total stands at $10.6 billion—meaning nearly 30% of claims are still in dispute. The FTX estate has set aside $6.5 billion in reserves to cover these outstanding obligations.

One particularly challenging area remains Chinese claims, which represent around 8% of all filings. Their resolution is on hold until a distribution provider capable of supporting users in China is onboarded.

KYC Issues Add to User Frustration

Adding to the delays are persistent issues with Know Your Customer (KYC) verification. Many users, particularly those with smaller claims, report excessive scrutiny and long wait times. Some, like FTX user Sal Wins, feel overwhelmed by repeated documentation requests—even for claims under $5,000.

Meanwhile, Payoneer has been added as a new distribution partner alongside BitGo and Kraken, potentially expediting future repayments. Payoneer’s global payment infrastructure covers over 190 countries and may especially assist retail creditors.

Also Read: Where Are FTX’s Tokens? Lawsuits Filed Against NFT Stars and Kurosemi

Market Impact on Horizon?

Some analysts speculate that a full resolution of FTX claims could inject much-needed liquidity and improve sentiment across the crypto market. But with regulatory bottlenecks and verification hurdles still in play, that relief may be further off than anticipated.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses

Related Posts