FTX customer seeks help after mistaken deposit allegedly results in $1M in fees. After reportedly receiving a charge of $954,135 from controlled exchange FTX, a crypto hodler is furious. The trader says the fee imposed was because of an error on the exchange’s part.
The Rekt Blog revealed images of conversation on Oct. 6 that show the issues started when the client transferred $6.3M in USDP. The stablecoin token for DeFi borrowing platform Unit Protocol, in late September.
Unfortunately, the Paxos stablecoin has been renamed as USDP, and the exchange’s PAX ticker has been changed to USDP since late August. As a result, the user allegedly placed $6.3 million in unsupported USDP tokens into the exchange’s Paxos stablecoin address.
FTX reimbursed the user by returning about $5.4 million in stablecoins, albeit with a 15% fee removed. The irritated user retaliated:
“You’ve taken more than $1M from my initial contribution”. This contradicts your guideline on “Wrong Address or Chain.” You duped me into depositing USDP to your FTX exchange. I’d want to make an appeal.”
FTX broke its own terms and conditions
According to Rekt, FTX broke its own terms and conditions, which specify that in such instances, a cost of up to 5% will be levied.
However, if the exchange needs to reclaim deposits sent to erroneous addresses, the terms now specify that a minimum of 5% may be chargeable.
Rekt stated that it had confirmed the deposits on the blockchain and had reached out to FTX for comment but did not receive a response. It demanded that the exchange to resolve the situation.
“As decentralised exchanges gain traction, trust becomes the most valuable characteristic a CEX can provide.” FTX has betrayed that confidence in this instance, and they must now take steps to repair it.”
The accusations were also posted on the FTX Official subreddit. However, the exchange took them down before the end of last month. One of the people who replied to Rekt’s tweet stated that he put the blog in the FTX Telegram group and was immediately removed.