- FTX charged a $1 million fee on customer’s erroneously deposit
- The customer was outraged after the incident and asked for help from Rekt
- According to FTX policy, they can charge up to a 5% fee in this kind of incident, however they charge 15% in this case
An unhappy FTX user asked for help from Rekt after the user allegedly charged the $954,135 fee from centralized exchange FTX. The user revealed that the fee was charged over a mistaken deposit due to the exchange’s fault.
At the end of the last month, stable coin PAX rebranded to USDP, an abbreviation which was already used for Unit Protocol’s stablecoin. FTX has changed the coin symbol PAX to USDP on their deposit page without any official announcement for users, which resulted in an incident, as the victim user deposited $6.3 USDP.
To resolve this issue, FTX returned a $5.4 million mistaken deposit in stablecoins by cutting down a 15% fee. The deduction of the fee turned into disappointment for a user and he 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 also supported the user comment after the customer’s appeal as the FTX violated its own terms and conditions. According to the “Wrong Address or Chain” policy, the exchange can take up to a 5% fee in such circumstances.
Rekt raised the questions on FTX services to their customers as they had verified the deposit on the blockchain. Also, they have tried to contact FTX, unfortunately, Rekt did not receive any comment from FTX.
“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.”