This is the amount that the platform withdrew from the user who sent the deposit to the wrong address

​The FTX client plans to sue the exchange for a commission of almost $1 million

08.10.2021 - 11:45


1 min

What's new? The FTX cryptocurrency was at the center of the conflict due to an inflated fee for repayment to the client who had sent the deposit to the wrong address. It valued it at 15% of the amount, which contradicts the platform’s rules, Cointelegraph reports.

Cointelegraph material

How did the events develop? The beginning of the controversy was the rebranding of PAX in Pax Dollar (USDP). This ticker had already used the Unit Protocol project for its USDP stablecoin. FTX switched coin tickers from PAX to USDP and did not inform the customers.

The previously mentioned FTX user mistakenly sent $6,3 million worth of tokens to the Paxos address. He was convinced that he was investing in stablecoin from Unit Protocol. Realizing that he had sent a deposit to an incorrect address, the client asked for help from FTX to refund the money.

How did the crypto exchange react to the client's request? FTX returned tokens to the user, but only for $5,4 million instead of $6,3 million. The exchange has withdrawn a commission of 15% for the operation, although its rules state that it can charge 5% of the amount in such cases.

What are the next steps of the client and FTX? Now the affected user plans to sue FTX for removing the inflated commission and misleading him. He sent a notification about this to the exchange’s technical support service. FTX, in turn, stated that the decision is final and not subject to revision.


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