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FTX customer seeks help after mistaken deposit allegedly results in $1M in fees

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A crypto hodler is outraged after allegedly copping a $954,135 charge from centralized trade FTX. The dealer claims the charge was charged over a mistaken deposit they imagine was the trade’s fault.

On Oct. 6, the Rekt Blog published screenshots of correspondence that counsel the issues started when the customer deposited round $6.3 million in USDP, the stablecoin token for DeFi borrowing platform Unit Protocol, in late September.

Unfortunately, the Paxos stablecoin has additionally rebranded to USDP and the trade modified the PAX ticker to USDP in late August. So the person apparently deposited $6.3 million of unsupported USDP tokens into the trade’s deal with for the Paxos stablecoin.

FTX compensated the person for the mistaken deposit by returning round $5.4 million in stablecoins however deducted a 15% charge. The disgruntled person fired again:

“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 its personal phrases and circumstances which state a charge as much as 5% will likely be charged in such circumstances.

However, when Cointelegraph checked, the circumstances at present state {that a} minimal of 5% could also be levied if the trade has to get well deposits to incorrect addresses.

Related: FTX smashes crypto funding record with $900M raise to become exchange decacorn

Rekt mentioned it had verified the deposits on the blockchain and contacted FTX for remark however had not acquired a response. It referred to as on the trade to rectify the issue.

“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 had been additionally posted on the FTX Official subreddit however had been deleted late final month. One respondent to Rekt’s tweet claimed he had posted the weblog in the FTX Telegram group and obtained banned immediately.

Cointelegraph has contacted FTX for remark. There had been no response on the time of writing.