A cryptocurrency exchange has commenced the distribution process for claims belonging to customers of the now-defunct FTX EU. In a recent announcement, the exchange invited former FTX EU users to register an account, provide Know Your Customer (KYC) details, and link their accounts to the FTX EU claims.
The claims distribution will unfold in two phases: first, the KYC verification, followed by the actual distribution of funds. Although the KYC verification process is currently underway, the specific timeline for when funds will be released has yet to be established.
Furthermore, users seeking to withdraw their funds will incur a fee. For claims totaling less than €2,000 (approximately $2,158), there will be a withdrawal charge of €5 (or about $5.39). For claims exceeding €2,000, a fee of 0.25% of the total claim amount will apply.
The claims support page highlighted that simply signing up for an account does not allow immediate access to claim distributions. The exchange emphasized its commitment to expediting the payouts, working alongside the necessary parties to ensure that distributions are made as quickly as possible. However, users must complete all steps of the process before they can access their funds.
As the claims distribution for former FTX EU customers commences, anticipation is rising among creditors regarding the ongoing recovery process. Separately, the bankruptcy estate of FTX has announced plans to begin distributing cash payments to major creditors starting at the end of May. Since the company’s collapse, the estate has accumulated approximately $11.4 billion in cash.
Smaller creditors identified as “convenience claimants” have already started receiving their respective payouts. In contrast, larger claimants are expected to see their distributions commence on May 30, 2025.
FTX, which was operated out of the Bahamas, faced a rapid failure in November 2022, triggered by allegations of unethical business practices by the management. This situation led to a significant influx of withdrawal requests from customers, ultimately forcing the exchange to file for bankruptcy. The founder was later convicted of fraud and is currently serving time in prison.
The FTX EU division, which was operating under a license from the Cyprus Securities and Exchange Commission (CySEC), had its operations suspended following the wider collapse of FTX. The exchange later confirmed its acquisition of the FTX EU unit, reportedly finalizing the transaction for $32.7 million in early 2025.
Now, with the revival of the claims process, former customers have the opportunity to reclaim their funds. However, they must comply with the KYC verification process to potentially access their compensatory amounts.