Bankrupt crypto exchange FTX has disqualified at least 392,000 compensation claims as of April 2, citing failure to meet KYC (Know Your Customer) requirements.

These rejections apply to users who did not begin identity verification by March 3. The exchange did not disclose the total value of the rejected claims.

However, according to Sunil Kavuri, a representative of the exchange’s largest creditor group, the combined value of these rejected claims is estimated at $2.55 billion — with $665 million tied to claims under $50,000 and $1.9 billion above that threshold.

As reported by Bloomberg, FTX’s new leadership deemed additional account verification essential due to the platform’s historic failure to perform even basic compliance, including tracking the origin of user funds.

FTX plans to start compensating verified claims over $50,000 by May 30.

Company lawyers mentioned receiving a staggering “27 quadrillion” claims, many of which are still under review — with “billions” expected to be fraudulent.

In February 2025, FTX allocated $1.2 billion for initial payouts to users with claims under $50,000.

Meanwhile, Terraform Labs (TFL) — the entity behind the collapsed Terra ecosystem — is set to open a compensation claims portal on March 31 for affected users.