FTX founder Sam Bankman-Fried, center, is escorted out of Magistrate Court following a hearing in Nassau, Bahamas on Dec. 19, 2022.

FTX founder Sam Bankman-Fried, middle, is escorted out of Magistrate Court following a listening to in Nassau, Bahamas on Dec. 19, 2022.
Photo: Rebecca Blackwell (AP)

When FTX halted withdrawals on November 8, at the very least one unfortunate soul had made their first deposit into the crypto change the exact same day, praying for a revenue. But by the point the cash had been deposited, the platform had shut down all trades, leaving this individual unable to do something. It’s only one unhappy story of many filed with the Federal Trade Commission, obtained by Gizmodo via a Freedom of Information Act request.

Less than every week after the halt in withdrawals, FTX declared chapter, owing at the very least $3 billion to 1,000,000 collectors. Where did that cash go? We needs to be getting solutions quickly, as former CEO Sam Bankman-Fried was arraigned Jan. third in New York federal court docket. He pled not responsible to a slew of federal prices, together with fraud and conspiracy.

Judicial schadenfreude apart, it’s vital to maintain a perspective on the human toll that lies within the wake of SBF’s alleged fraud. Real individuals misplaced their life financial savings to FTX’s calamitous chapter. To that finish, Gizmodo has obtained paperwork that make clear the how customers have been bothered by FTX’s collapse in November.

While individuals like CNBC’s Kevin O’Leary have gotten the headlines for saying they misplaced cash throughout the FTX implosion, we not too long ago realized O’Leary solely had cash invested that he’d been given as a part of his sponsorship cope with FTX. O’Leary can say he “lost” his personal cash when FTX went underneath, however that’s actually not true as Joe Kernen, one other CNBC commentator, recently pointed out. O’Leary was paid $15 million to be a paid spokesperson for FTX, and in flip, FTX stated he had to purchase a bunch of the corporate’s rubbish crypto token with that cash.

The complaints filed with the FTC embrace all the pieces from unhealthy customer support to allegations of outright fraud. Some of probably the most heartbreaking tales from the complaints contain individuals who heard about FTX collapsing and tried to get their cash out as shortly as attainable, to no avail.

But not the entire complaints concern FTX’s chapter. Some predate FTX’s very public issues and doc a number of different points, together with a scarcity of buyer help. There are quite a few complaints from individuals who say it was extremely straightforward to place cash into the platform, however very tough to get it out. Others are about FTX’s buy of Blockfolio, a competing crypto firm. Users complained that when FTX absorbed the smaller change in July of 2021, their crypto merely disappeared.

Gizmodo couldn’t independently confirm the claims within the complaints we’ve obtained via FOIA, given the redactions made by the FTC, however we imagine persistent patterns within the complaints paint an image of how the corporate handled its customers even at one of the best of instances. The FTC launched 207 complaints, many involving individuals who thought they have been coping with FTX, however have been really giving their cash on to scammers posing as FTX. The “accidental text” manner of discovering marks for scams appeared to be significantly frequent amongst FTX impersonators. The 17 complaints we’ve printed under all look like from customers who have been legit prospects of FTX.

Minor spelling and punctuation adjustments have been made for readability, however the substance of every grievance stays.

“They have declared bankruptcy”

November 15, 2022

On November 2nd I transferred 300 to FTX.us through ACH. It was supposed to have the ability to be withdrawn by November 14th. But now on the 14th, you possibly can not login to their web site they usually have declared chapter.

“While waiting for the ACH deposit to clear, they went under…”

November 14, 2022

A crypto change “FTX” was marketed on an F1 automobile from Mercedes. I deposited cash there, whereas ready for the ACH deposit to clear, they went underneath and disabled logins and withdrawals.

“I have funds in the acct and I cannot access it.”

November 14, 2022

As of October 2021 I’ve ship a number of emails to FTX US (cryptocurrency) to allow them to know that I’ve modified my electronic mail server, and reason behind that I needed to change my electronic mail which is the one in my FTX US account [redacted] my new electronic mail is [redacted]. FTX US has responded with electronic mail that state I ought to wait 72hrs trigger they’re very busy, I’ve waited and gone through the method of what the e-mail they ship me in what to do, however right here is the cliche it takes me again to put one other help ticket. I’ve funds within the acct and I can not entry it. Reason I’m reaching out to your dept for some assist. The honest resolution is for FTX US to succeed in out to me and assist me repair the problem owing my account, they’ve my SS quantity my phone quantity my linked checking account and I’ve ship them my new electronic mail to contact me, furthermore explaining the e-mail account discrepancy, I ask for somebody to stroll me through the steps.

“The withdrawal was confirmed as ‘sending.’ I have not gotten my money.”

November 14, 2022

I had money in my FTX Crypto account and initiated a withdrawal the night of 11/10/22. The withdrawal was confirmed as “sending”. I’ve not gotten my cash to the only linked checking account I used for my FTX account.

“I wired the remaining funds out of the brokerage and into my bank… I have yet to receive my wire transfer.”

November 13, 2022

I used to be utilizing FTX US as a cryptocurrency brokerage service. Once information broke about their attainable failures, I wired the remaining funds out of the brokerage and into my financial institution on 11/09/2022. On 11/11/2022 the corporate filed for chapter. I’ve but to obtain my wire switch.

“These are my hard-earned savings”

November 12, 2022

FTX US was presupposed to return my $25,000 (they have been saved as USD on FTX US, unsure if FTX US did one thing else with my financial savings) through ACH to my checking account. They haven’t executed so and aren’t responding to customer support messages. Please see the dates on the hooked up file, which is the communication with their buyer help. These are my hard-earned financial savings and FTX US must return my financial savings.

“I currently am unable to login to withdraw any crypto if it’s even still there. After the fallout of FTX.US being a scam and filing for Chapter 11, I want to document that I have been scammed along with thousands of other people.”

November 12, 2022

I created an FTX.US account on 12/27/2021 after doing analysis on the FTX change. I deposited round $9,500 of Solana together with importing 30 NFT’s on their web site. I presently am unable to login to withdraw any crypto if it’s even nonetheless there. After the fallout of FTX.US being a rip-off and submitting for Chapter 11, I wish to doc that I’ve been scammed together with hundreds of different individuals. I reached out to the FTX workforce via twitter and phone us function with no response acquired. For the previous 3 days I’ve been making an attempt to login to at the very least withdraw my NFT assortment which at the moment is over 10,000 apart from the $9,500 of Solana deposits however I can not get via. Many individuals on Twitter and Reddit have reported having their accounts fully worn out. I wish to be sure that if that’s the case with my account, at the very least I’ve submitted this report so I can embrace it within the class motion lawsuit in opposition to FTX.US and SBF.

“The timing was uncanny”

November 8, 2022

Within hours of public information concerning Sam Bankman-Fried’s FTX crypto change failing resulting from liquidity points, I acquired an electronic mail (from Walmart) that my BlockFi bank card was charged for $415.88 then shortly cancelled resulting from being flagged by the credit score fraud workforce.

The timing was uncanny, the e-mail got here in proper across the mini pump and dump of Bitcoin (I watch the every day candles consistent with inventory market actions) and contemplating all of the crime inside and between crypto and Wall Street I wasn’t positive who to inform however the FTC appeared extra acceptable than the SEC (who I imagine are lax to the purpose of being complicit).

IF this was not only a coincidence, it’s attainable FTX and/or associated entity, BlockFi, timed some inner crime sufficient to pump up their steadiness sheets for future restructuring negotiations. And on the very least, my privateness and and credit score file have been violated!!

I don’t know if the FTC can discover the suitable place and folks to ship this tip alert to, however at the very least I attempted. I’ve solely ever had one different unauthorized bank card buy in my life. This shouldn’t be a commonly occurring factor for me. I can scent the stench of crime.

(Purely speculative however there are suspicions that FTX is a entrance for Ken Griffin’s (and cronies) Citidel, Citidel Securities and their associated unhealthy Wall Street bets.)

Thank you for studying.

“My deposit never showed up on my account.”

January 13, 2022

FTX US offers in cryptocurrency investments. This firm popped up on a Google search and I opened an account. It gave directions on methods to make a deposit of US {dollars} in order that funding could possibly be initiated. My deposit by no means confirmed up on my account. It did present on my financial institution assertion. When I contacted them through a help ticket, They stated I needed to open a distinct account and gave unattainable directions on methods to accomplish this. I stated, simply switch the cash to the one account that I’ve and might log onto. They stated they couldn’t try this. I stated please shut my account and return the funds that I deposited. They stated on the help ticket that they couldn’t try this both. I requested for a cellphone quantity for help in order that they may stroll me via it. There is not any help cellphone quantity. There is not any mailing handle. Now they not reply to my help ticket requests. I imagine this firm is a rip-off.

“Received a message stating that withdrawals are unavailable.”

December 22, 2021

I put in a bit of over $600 complete in US {dollars} and SHIB coin to purchase the 2974 Steph Curry NFT (priced at $499 complete). I used to be charged 2.5M SHIB to switch my crypto to FTX (roughly $91 USD on the time of penning this electronic mail). Error messages when making an attempt to purchase included please strive once more not sufficient funds and too many makes an attempt strive once more in 24 minutes. After NFT sale ended, I tried to withdraw my belongings and acquired a message stating that withdrawals are unavailable.

“At this point, I just want to liquidate my account and get my money out”

November 1, 2021

About 2 months in the past, a cryptocurrency investing app – Blockfolio was offered to FTX. At that point, the Blockfolio app required an replace and altered to the FTX app. At that point, I misplaced the power to log into my account. I’ve logged many tickets with their tech help website and did work with one one that helped me change my password so I may log into my account. However, my account now exhibits a $0 steadiness. Company’s web site supplies not contact data (no cellphone quantity or handle) past the power open a bother ticket. I’ve opened a number of tickets explaining the problem and requesting a name again from a reside agent, however no response. I’m positive there’s a technical glitch someplace, however I can not get anybody to help me and I’ve not had entry to my funds for over a month. At this level, I simply wish to liquidate my account and get my cash out, however I can not get anybody to help with this so I’d wish to formally lodge a grievance with the buying and selling fee. Thank you.

“It takes no time to deposit”

November 30, 2021

I’ve made few deposits that provides as much as 1600$ in FTX. The platform said it would take as much as 3-5 enterprise days to have the ability to withdraw my cash. But my final deposit was on Nov twenty third and the app nonetheless on permit me to withdraw. It takes no time to deposit however crazily lengthy course of to withdraw.

“I have been unable to log into my account.”

November 2, 2021

Blockfolio was cryptocurrency app I used to put money into inventory. Since they up to date their app and renamed it to FTX, I’ve been unable to log into my account. Its asks me to replace my password which I’ve no drawback doing so but it surely stays on the identical display screen and doesn’t let me do anything. I’ve made a report however haven’t heard again from the corporate. A whole lot of customers have additionally complained about this and have even stated their cryptocurrency has been cleaned and might not see their deposits. This firm looks as if a rip-off and I wish to report it so this doesnt maintain occurring to different individuals. Please contact me at [redacted] with any questions or considerations. Thank you.

“This is my life savings”

October 20, 2021

On Sunday October 17 at 11:00pm my FTX crypto account was both hacked or stolen by the change. I had over $120,000.00 on this account. They haven’t given me any data on what has occur to my account its simply gone. Please assist me that is my life financial savings.

“I was advised ftx has no record of my account.”

October 16, 2021

Access to my account was modified throughout an app replace. I reached out to help@blockfolio.com. it was very poor help. It took months to get a reply. I used to be requested to contact compliance@ftx.us, I’m nonetheless ready for a response on my considerations. I used to be suggested ftx has no report of my account. I’ve a affirmation electronic mail, help emails and financial institution information that help I do I’ve an account. I had simply over 13 SOL crypto cash which I even have display screen photographs of. Any help can be significantly appreciated.

“As of my understanding, no one has been able to recover their funds.”

August 23, 2021

In June 2021 I deposited $800 to purchase cryptocurrency. I used to be informed to attend 15 enterprise days earlier than withdrawing. On August 2nd I made a decision to withdraw my funds and there was an error (Said that I had a learn solely account). I reached out to customer support on August 2nd to get assist. They requested for a duplicate of my identification and a selfie to show my id. I despatched it in. They requested for it once more on August fifth. I despatched it in. They requested for them multi function image on August eighth 2021, I ship that in on August eighth, 2021 they usually stopped responding. I wrote them a minimum of seven instances asking for an replace within the standing. I wrote them once more on a brand new thread which issued me a brand new bother ticket quantity. I used to be informed by one customer support individual to attempt to delete the app and re-install. I did and reported to them that it didn’t work they usually haven’t responded. I seemed on-line to examine to see if anybody else has been having issues and there have been 5-10 individuals who have been all having issues withdrawing their funds from FTX/Blockfolio. As of my understanding, nobody has been capable of get better their funds. Each of us has deposited sufficient to be price tens of hundreds of {dollars} within the close to future.

“I have no recourse”

May 14, 2021

On 5/6/2021 I despatched a wire switch as a way to change these funds for crypto belongings like Bitcoin. I’ve verified from my financial institution that they’ve acquired the funds, however the change is holding on to the funds with out crediting it to my account and with out recalling the wire. I’ve had no entry to those funds for over every week. They don’t reply my emails however despatched a notification that they may maintain on to my funds. I’ve no recourse.

#FTX #User #Complaints #Heartbreaking

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