FTX Repayment Faces Scrutiny Over KYC Issues and Pending Claims

The post FTX Repayment Faces Scrutiny Over KYC Issues and Pending Claims appeared first on Coinpedia Fintech News FTX , the bankrupt cryptocurrency exchange , is under scrutiny as users report over $2.2 billion in disputed claims , raising serious concerns about the fairness and transparency of the ongoing repayment process. $2.2 Billion in FTX Claims Still Disputed Despite beginning its second round of repayments on May 30 , where over $5 billion in digital assets were returned to creditors, issues persist. In the first phase , $1.8 billion was repaid. However, according to the FTX Creditor and Customer Ad-Hoc Committee , an estimated $2.2 billion worth of claims still remain unresolved. On June 11, committee member Sunil shared updates on X (formerly Twitter), noting: “Current allowed claims: $7.5B.Total estimated allowed claims: $10.6B.30% of allowed claims are disputed—legit claims will be allowed.” He added that FTX currently holds $6.5 billion in reserves for upcoming distributions. Cross-Border Repayments Expand with Payoneer In a key update, FTX has added Payoneer as a repayment partner, alongside BitGo and Kraken , to distribute funds to creditors. Payoneer supports cross-border payments in over 190 countries , improving reach for retail customers in eligible regions. However, countries like China, Russia, Nigeria, and Egypt remain excluded from repayment , delaying future disbursement timelines until a compliant payment provider is found for these regions. KYC Verification Issues Trouble FTX Creditors A growing number of users are raising concerns about FTX’s KYC (Know Your Customer) process , which many say has become unnecessarily strict and difficult to complete. One user, Sal Wals , posted: “I’ve been asked for multiple evidence of my source income. I feel like I’m on trial.” Others have echoed similar concerns, citing delays and a lack of response from support. What’s Next for FTX Creditors? The ongoing issues— disputed claims, KYC bottlenecks , and cross-border distribution limitations —highlight critical gaps in FTX’s global repayment strategy .While some investors remain optimistic about a potential liquidity boost if repayments resume smoothly, many continue to question the platform’s transparency and governance in handling creditor claims.

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