Key Highlights:
• $655 million in smaller claims (under $50,000) vaporized
• $1.9 billion in large claims dismissed due to KYC non-compliance
• Nearly 392,000 customers affected, across 2,377 pages of filings
Ladies and Gentlemen of ParadiseClub! What happens when 392,000 customers fail to complete KYC in the middle of one of crypto’s most chaotic bankruptcies? They get wiped off the books, and FTX just proved it.
In a landmark twist inside the Delaware bankruptcy courtroom, FTX has axed over $2.5 billion worth of claims tied to users who didn’t meet its March 3 identity verification deadline. These disqualified claims, involving both small and large creditors, now reduce the total liabilities against the estate, potentially increasing payouts for verified users.
While some estimate the disqualified amount at $1 billion, creditor advocate Sunil Kavuri insists the real number is far higher, nearing $2.5 billion. That’s not just a dent, it’s a crater. And in a rare win for verified creditors, this could significantly improve recovery rates.
So, what now?
FTX, now under new leadership, has promised to start repayments by May 30, based on crypto prices at the time of its collapse in November 2022, not today’s booming valuations. That means you’ll get your cash, not your coins, unless you were strategic enough to reclaim before the cutoff.
Amidst this, the firm also admitted it has received a staggering “27 quintillion” claims submissions, most of which they say are either fraudulent or hilariously inflated.
Meanwhile, Bitcoin is wobbling just above $83,600 and Ethereum is hovering near $1,815, both slightly down on the day. The crypto market continues to brace itself for every twist and turn, and this FTX fallout is far from over.
But here’s the part that matters most:
Strategic, Safe, and Serious Trading Begins with Professional Tools and Communities
If you’re tired of navigating chaos, inflated promises, and surprise deadlines, it’s time to upgrade your crypto mindset. At ParadiseFamilyVIP, we show you how to move like a pro, with emotional discipline, smart positioning, and professional crypto signals built for consistent results.
Want even more edge? Join MCP News Private to get early intel on news like this, before the rest of the world reacts. And don’t miss our deep-dive market breakdowns on the MCP YouTube Stream, where strategy meets clarity, every time.
Because surviving this market isn’t enough, we’re here to win it.
