Your FTX KYC Was Rejected - What Now?

Start with the official Failed status

In the U.S. Chapter 11 process, FTX uses Failed for unsuccessful document verification or KYC, AML or sanctions screening. It is not automatically a court decision expunging the claim. The official explanation also describes the possibility of a claim objection; the applicable notice matters.

“It means that we were not able to verify the documentation you provided to us or otherwise you have not passed our KYC / AML / Sanction screening process.”

— KYC Statuses Explained, June 2, 2025

A Failed status can mean unverifiable documents or a failed AML or sanctions screen, so the stated reason decides what you can do next.

Identify which process produced the result. An FTX portal status, a Bahamas identity-verification message and a distribution provider's onboarding refusal come from different processes. Check the official U.S. status definitions or the Bahamas portal guidance for the process handling your claim.

Read the reason and the requested action

Keep a copy of the status and the full notice. Look for the claim reference, the reason given, any document request, a response date and the specified reply channel. If the message does not say whether a correction can be submitted, ask that question before sending another set of documents.

Where a correctable document problem is identified, respond to that problem. Explain an inconsistent name or an outdated address and provide the evidence requested through the authorised upload route. Do not assume that a clearer scan can resolve every screening outcome.

Where the reason is unclear, a useful question is: “Does this notice allow me to submit further information, and if so, what information is needed and by when?” There is no basis for treating every refusal as a standard appeal with a universal deadline.

Check whether the claim itself has been affected

A claim objection, a court order and a KYC screen need to be read separately. If a notice refers to disallowance or expungement, obtain the referenced filing and check whether your claim is covered. Do not describe it as a routine document resubmission without checking the claim record.

“Where the Original Holder of a Customer Entitlement Claim has not commenced the KYC submission process, or has failed to submit all requested KYC information, the Debtors are missing a critical element of such Customer Entitlement Claim.”

— Debtors' One Hundred Thirtieth (Non-Substantive) Omnibus Objection to Unverified Customer Entitlement Claims, D.I. 28225, November 22, 2024

Missing KYC is treated as a defect in the claim itself, which is why it can lead to a court objection and expungement.

Where an objection or order is involved, advice on that specific filing may be needed to understand any available response.

If the refusal came from a payment provider

Check the selected provider's own decision and the information held on that account. FTX's distribution-provider guidance treats provider eligibility and onboarding separately. A provider refusal should not be rewritten as an FTX claim rejection.

Can a claim with rejected KYC still be considered for sale?

A buyer needs to understand the failed check, the claim's legal status and the transfer requirements before deciding whether a transaction is possible. An unresolved screening issue or a claim order can affect that assessment. Changing the proposed recipient is not evidence that the issue has disappeared.

You can ask Qredax to assess your claim using the actual status and notices. Qredax also reviews expunged claims case by case, at a discount that reflects the risk that the claim is never reinstated. An assessment or indicative offer is not confirmation that a transfer can close. The KYC requirements before selling explain the questions to resolve, including the difference between U.S. and Bahamas claims.

Frequently asked questions