FTX users fight to unlock $2.2B in still-disputed bankruptcy claims

Bankrupt cryptocurrency exchange FTX is facing fresh scrutiny from users fighting for at least $2.2 billion worth of disputed claims still pending approval, with numerous creditors continuing to struggle to get their repayments approved.

The FTX Recovery Trust started its second round of payments on May 30, repaying over $5 billion worth of digital assets to eligible creditors who have completed pre-distribution requirements.

Still, at least $2.25 billion worth of repayments remain in dispute, according to estimates shared by Sunil, FTX creditor and Customer Ad-Hoc Committee member.

“Current allowed claims: $7.5bn. Total Estimated allowed claims: $10.6bn. 30% of allowed claims are disputed – legit claims will be allowed,” Sunil wrote in a June 11 X post.

The FTX estate holds an additional $6.5 billion worth of reserves for disputed claims, which are likely to be paid at the next distribution, Sunil told Cointelegraph, adding:

“I foresee most of the disputed [claims] getting allowed for the next distribution.”

“However, there is much uncertainty regarding the Chinese claims, which made up 8% of claims on the bankruptcy,” Sunil said, adding that it is difficult to predict a timeline for these payments until a distribution provider supporting China is announced.

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Cointelegraph has reached out to FTX for comment regarding the timing of the next repayment round and clarification on the outstanding claims.

The first round of FTX creditor payments saw $1.2 billion distributed to recipients with claims of less than $50,000 on Feb. 18.

The news comes a day after FTX partnered with a third payment distribution service provider. On Tuesday, FTX added Payoneer as its third distribution partner alongside BitGo and Kraken. Payoneer provides cross-border payment services in over 190 countries and is expected to assist primarily with retail customer payouts.

Related: Nearly 400,000 FTX users risk losing $2.5 billion in repayments

FTX creditors struggle with KYC verification

Multiple FTX creditors have reported issues when completing their Know Your Customer (KYC) verification process for the repayments.

“Any info on bahamas kyc pending? No response for 5 months,” wrote X user Big Penger, in a June 11 response.

“I’ve been requested multiple evidence of my source income. I feel like I’m on trial and I can’t really understand why they are so interrogative,” said FTX creditor Sal Wins, adding that his claim is less than $5,000.

Some crypto investors have speculated that the full extent of the FTX repayments may bring a significant sentiment and liquidity boost, which may provide more upside for the cryptocurrency market.