FTX Customer Demands Help After A Deposit Resulted In $1M In Fees

An FTX Customer demands help after he mistakenly deposited funds that resulted in fees worth $1 million according to the reports by DeFi blog Rekt so let’s read more in our latest cryptocurrency news today.

The crypto holder was outraged after allegedly getting a $954,135 fee from the centralized exchange FTX. The trader claimed the fee was charged over a mistaken deposit that was allegedly the exchange’s fault. The Rekt Blog published a few screenshots of correspondence that suggest the problems started when the consumer deposited around $6.3 million of USDP from the Defi borrowing platform Unit Protocol back in September. The Paxos stablecoin was also rebranded to USDP and the exchange changed the PAX ticker to USDP so the user apparently deposited $6.3 million of unsupported USDP tokens into the exchange address for the Paxos stablecoin.

This is a customer service announcement.

Will FTX please comply with their own terms and conditions?

An unhappy @ftx_app user came to us for help after they were overcharged ~$954,135 in fees.

Is this how @SBF_FTX got into @Forbes?https://t.co/DJ1jnxaBh6

— Rekt News (@RektHQ) October 6, 2021

The FTX customer demanded help so the exchange compensated the user for the mistaken deposit by returning $5.4 million in stablecoins but dedicated a 15% fee so the user fired back:

“You have deducted more than $1m off my initial deposit amount. This does not align to your “Wrong Address or Chain” policy. I did not deliberately deposit USDP to your FTX exchange, I was misled. I wish to appeal please.”

Rekt reported that FTX didn’t abide by the terms and conditions which state a fee of up to 5% that will be charged in such circumstances. According to reports, the conditions now state that a minimum of 5% will be levied if the exchange has to recover the deposits to incorrect addresses. Rekt said that it verified the deposits on the blockchain and contacted FTX for comments but didn’t get a response:

“As decentralized exchanges grow in popularity, trust becomes the most valuable feature that a CEX can offer. In this case, FTX has broken that trust, and they must now take action to fix it.”

The claims were also posted on the FTX official subreddit but were deleted late last month. One user responded to the tweet claiming he posted the blog in the FTX Telegram group and got banned instantly.