Home Crypto A trader’s deposit on FTX costs them a million dollars in fees

A trader’s deposit on FTX costs them a million dollars in fees

Bad publicity for decentralized FTX exchange. A trader accuses him of having improperly pocketed nearly a million dollars in fees after a deposit in stablecoin.

FTX enjoys a good reputation in the world of DeFi and cryptocurrencies. Unlike Binance or Coinbase, FTX is based on a decentralized model. And the company intends to compete with these giants.

A few months earlier, she completed a record fundraiser of $ 900 million. But, like its competitors, FTX also has to deal with customer relationship issues and costs.

An error sanctioned by 15% costs

On social networks, the DEX is indeed pinned for huge transaction fees levied on an operation. For the trader concerned, the bill is clearly indigestible. By spreading the word on Twitter, he hopes to convince FTX to back down.

As the Rekt Blog reports, it all started at the end of September with a deposit of $ 6.3 million in USDP. It is the stablecoin of the Unit Protocol lending platform. Problem, this acronym also corresponds to the stablecoin of Paxos.

FTX manages Paxos’ cryptocurrency, but not Unit Protocol’s. An error therefore, but one that the dissatisfied investor attributes to the exchange. The latter therefore returns the funds to its holder … but after the deduction of a commission.

This is where the pill proves difficult for the trader to swallow. The latter considers himself cheated by the exchange. The company offered itself a generous commission in the form of fees in the amount of almost $ 1 million.

A violation of the FTX Terms of Service?

Clearly, on this operation, its share reached 15%. It is therefore, even more so when one pleads error. The investor therefore raises the tone and even denounces FTX’s non-compliance with its conditions of use.

As Rekt points out, in the event of an error, FTX undertakes according to its policy to apply fees up to 5%. CoinTelegraph, which also consulted the rules for using the exchange, however, makes another observation.

Our colleagues note that the current policy stipulates that these fees will amount to 5%, minimum. The nuance is subtle, but fraught with consequences. Rightly or wrongly, Rekt does not intend to throw in the towel and demands accountability.

“As decentralized exchanges gain popularity, trust becomes the most valuable characteristic that a CEX can offer. In this case, FTX has broken that trust, and they must now take action to address it, ”storms the blog. Radio silence for the moment from FTX.

No Comments

Leave A Reply

Please enter your comment!
Please enter your name here

Exit mobile version