Bitcoin (BTC) FTX exchange client lost $1M million on commission for a mistaken deposit

Thu 07 Oct 2021 ▪ 18h49 ▪ 3 min de lecture - par Mary Anderson

A user of the popular FTX cryptocurrency exchange lost about a million dollars (~£736,920) on commission for returning an erroneous deposit.

Misleading info

A user under the nickname Rekt claims that the centralised FTX crypto trading platform violates its own rules. Having made an erroneous deposit of $6.3 million (~£4.6 million), Rekt was forced to pay $954,135 (~£703,120) for a refund, while, according to the company’s policy, the commission for such operations should not exceed 5% of the sum.

Moreover, the cryptographer also claims that the mistake he made when depositing funds was the result of an oversight of the exchange itself, due to which the user deposited $6.3 million (~£4.6 million) of unsupported USDP tokens into the trade’s deal with for the Paxos stablecoin, instead of the DeFi borrowing platform Unit Protocol. Both addresses have the same USDP ticker.

FTX returned about $5.4 million (~£4 million) to the user, but the cryptocurrency exchange charged a million-dollar commission for this operation. $954,135 (~£703,120) is about 15% of the initial $6.3 million (~£4.6 million), while according to FTX’s own policy, the commission fee for the return of a mistaken deposit should not exceed 5%: 

“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,” says Rekt.

Trust issues

However, as it turned out, according to the FTX rules, the commission for the return of deposits to incorrect addresses is not 5%, but “at least 5%”. So, the trading platform can easily fend off all accusations. But Rekt does not agree with this state of affairs:

“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.”

Rekt also contacted the official subreddit of the trading platform and its Telegram chat. However, in the first case, the topic created by the exchange user was deleted on Reddit, and he was simply blocked in the chat.

A
A
Mary Anderson

I am sure that crypto assets are a new type of economy. We are at the origins of the crypto revolution. Right now, it is worth studying what cryptocurrencies and the blockchain are in order to make the most of this knowledge and these skills in the future.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

Prices & Indices

BITCOIN (BTCUSD) $64,433.33 0.3%
ETHEREUM (ETHUSD) Ξ $3,940.33 1.6%
DEFI (DEFIPERP) $11,951.50 1.75%
MARKETS (ACWI) $104.65 0.08%
GOLD (XAUUSD) $1,778.39 0.51%
TECH (NDX) $15,433.87 0.15%
CURRENCIES (EURUSD) $1.16 0.08%
CURRENCIES (EURGBP) £0.844690 0.21%
CRUDEOIL (USOIL) $81.56 -1.78%
IMM. US (REIT) $2,681.11 0.25%
The percentage expresses the change over the past 24 hours BUY CRYPTOS WITHOUT RISK
Newsletter

Receive the latest and best crypto news directly to your inbox

Free coaching

Receive a free hour of coaching with an expert! Just fill in this form and our expert will contact you within 48 hours.