FTX charges customer $1 million for transferring to wrong address ๐จ This article is 3 years old...
FTX charges customer $1 million for transferring to wrong address
FTX customer cries out after mistaken deposit allegedly results in $1M in fees
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Updated: Oct. 8, 2021 at 11:53 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
A blog post from Rekt has revealed that FTX, a leading centralized exchange, has charged one of its users around $1 million for helping him to retrieve a deposit made into a wrong address.
FTX charged 15% instead of 5%
According to the post, the trader made a wrong deposit of $6.3 million into Paxos Stablecoin, whose ticker had been rebranded to USDP, whereas his intention was to deposit the funds into the stablecoin token for DeFi borrowing platform Unit Protocol whose ticker was also USDP.
In the defense submitted to the exchange, the trader revealed that this mistake was from the exchange because it failed to notify its users โof any other important announcements (such as coin name change) except emails of upcoming IEOs.โ
He also continued that the charges being levied against him does not align with the โWrong Address or Chainโ policy of the exchange which states that the exchange would only charge between โ$500 or 5%โ to help a customer retrieve wrong deposits made into an FTX address. Instead, the exchange is taking around 15 percent of the funds as its charges.
The FTX support attending to the customer gave an interesting response to the customer defense which reads, โUnfortunately the decision on this matter is final. Please do not deposit assets that are not supported on your FTX addresses.โ
No official response from the exchange
Rekt stated that it was able to confirm the transaction on blockchain and that it also contacted FTX for comments but it received no response. So it is calling on the exchange to โcharge this user the 5% fee that (is) proposed in your terms and conditions, or explain to the community why they decided to ignore their own policy.โ
Available information has shown that the claims made by this customer was posted to the official FTX subreddit but it was deleted.ย
Ok Iโve just posted this tweet in their Telegram group and Iโve got banned ???
— Barmy (@__Barmy) October 6, 2021
A Twitter user @Barmy also claimed to have sent the Rekt blog post to a FTX telegram group but got banned immediately too.
As of press time, the exchange was yet to release any official comment.
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Posted In: Exchanges
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Sam Bankman-Fried is the former CEO, and co-founder of defunct crypto exchange FTX and Alameda Research.