FTX Faces Backlash Over Repayment Delays and KYC Hurdles

The bankrupt cryptocurrency exchange FTX is under intense scrutiny as users encounter significant challenges with the Know Your Customer (KYC) verification process and unresolved claims. With $2.2 billion in disputed claims—30% of the total $10.6 billion estimated allowed claims—the repayment process has sparked widespread criticism. Despite initial distributions, committee members highlight ongoing issues, including delays and stringent KYC requirements, while noting that $7.5 billion in claims have been addressed. As of June 2025, the situation remains unresolved, leaving many users frustrated and uncertain about the future of their funds.

FTX Repayment Process Under Scrutiny Amid KYC Challenges and Unresolved Claims

FTX, the bankrupt cryptocurrency exchange, faces mounting criticism as users report stringent Know Your Customer (KYC) verification hurdles and delayed claim resolutions. The repayment process, which began with initial distributions, has left $2.2 billion in claims disputed, representing 30% of the total $10.6 billion estimated allowed claims. Committee members highlight these challenges while noting $7.5 billion in current allowed claims and reserves set aside for future distributions.

Cross-border repayments have expanded with Payoneer joining as a distribution partner, alongside other providers, to facilitate payments in eligible regions. However, countries lacking compliant payment solutions face delays. Creditors voice frustration over KYC demands, with one user describing the process as akin to being "on trial" due to excessive documentation requests.

Shaquille O’Neal Agrees to $1.8M FTX Settlement

NBA legend Shaquille O’Neal has reached a $1.8 million settlement over allegations he misled investors by promoting FTX, the now-bankrupt cryptocurrency exchange. The deal, pending court approval, resolves a class action lawsuit filed in Florida federal court.

FTX''s collapse in late 2022 sent shockwaves through crypto markets. O’Neal and other celebrities had endorsed the platform as a trustworthy venue for trading digital assets. His appearances in commercials, live events, and social media campaigns encouraged fans to use FTX—unaware of the alleged fraud occurring behind the scenes.

The settlement covers legal fees, administrative costs, and investor payouts. It applies to all FTX Token holders between May 2019 and late 2022. While other celebrity promoters saw their cases dismissed, O’Neal remained a target of litigation into 2023.