‘These Are My Hard-Earned Savings:’ 17 User Complaints Show the Human Impact of FTX’s Collapse

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

When FTX halted withdrawals on November 8, no less than one unfortunate soul had made their first deposit into the crypto alternate the exact same day, praying for a revenue. But by the time the cash had been deposited, the platform had shut down all trades, leaving this particular person unable to do something. It’s only one unhappy story of many filed with the Federal Trade Commission, obtained by Gizmodo by a Freedom of Information Act request.

Less than per week after the halt in withdrawals, FTX declared chapter, owing no less than $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 courtroom. He pled not responsible to a slew of federal expenses, together with fraud and conspiracy.

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Judicial schadenfreude apart, it’s essential to maintain a perspective on the human toll that lies in 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 troubled 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 just lately realized O’Leary solely had cash invested that he’d been given as half of his sponsorship cope with FTX. O’Leary can say he “misplaced” his personal cash when FTX went beneath, 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 firm’s rubbish crypto token with that cash.

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

But not all of the complaints concern FTX’s chapter. Some predate FTX’s very public issues and doc a number of different points, together with an absence of buyer assist. 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 alternate in July of 2021, their crypto merely disappeared.

Gizmodo couldn’t independently confirm the claims in the complaints we’ve obtained by FOIA, given the redactions made by the FTC, however we consider persistent patterns in the complaints paint an image of how the firm handled its customers even at the greatest of instances. The FTC launched 207 complaints, many involving individuals who thought they have been coping with FTX, however have been truly giving their cash on to scammers posing as FTX. The “unintentional textual content” means of discovering marks for scams appeared to be notably frequent amongst FTX impersonators. The 17 complaints we’ve revealed under all look like from customers who have been reputable prospects of FTX.

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

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.

November 14, 2022

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

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 e mail server, and trigger of that I needed to change my e mail which is the one in my FTX US account [redacted] my new e mail is [redacted]. FTX US has responded with e mail that state I ought to wait 72hrs trigger they’re very busy, I’ve waited and gone through the course of of what the e mail they ship me in what to do, however right here is the cliche it takes me again to position one other assist ticket. I’ve funds in the acct and I can not entry it. Reason I’m reaching out to your dept for some assist. The honest answer is for FTX US to succeed in out to me and assist me repair the situation owing my account, they’ve my SS quantity my phone quantity my linked checking account and I’ve ship them my new e mail to contact me, furthermore explaining the e mail account discrepancy, I ask for somebody to stroll me through the steps.

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 single linked checking account I used for my FTX account.

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 firm filed for chapter. I’ve but to obtain my wire switch.

November 12, 2022

FTX US was speculated 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 achieved so and should not responding to customer support messages. Please see the dates on the connected file, which is the communication with their buyer assist. These are my hard-earned financial savings and FTX US must return my financial savings.

November 12, 2022

I created an FTX.US account on 12/27/2021 after doing analysis on the FTX alternate. 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 staff by twitter and get in touch with us characteristic with no response acquired. For the previous 3 days I’ve been attempting to login to no less than withdraw my NFT assortment which right now is over 10,000 other than the $9,500 of Solana deposits however I can not get by. Many individuals on Twitter and Reddit have reported having their accounts utterly worn out. I wish to be certain that if that’s the case with my account, no less than I’ve submitted this report so I can embody it in the class motion lawsuit towards FTX.US and SBF.

November 8, 2022

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

The timing was uncanny, the e mail got here in proper round the mini pump and dump of Bitcoin (I watch the each day candles in step with inventory market actions) and contemplating all the crime inside and between crypto and Wall Street I wasn’t certain who to inform however the FTC appeared extra applicable than the SEC (who I consider are lax to the level of being complicit).

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

I don’t know if the FTC can discover the proper place and folks to ship this tip alert to, however no less than I attempted. I’ve solely ever had one different unauthorized bank card buy in my life. This will not be a recurrently 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.

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 learn how to make a deposit of US {dollars} in order that funding may very well 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 assist ticket, They stated I needed to open a unique account and gave not possible directions on learn how to accomplish this. I stated, simply switch the cash to the solely 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 assist ticket that they couldn’t try this both. I requested for a telephone quantity for assist in order that they may stroll me by it. There is not any assist telephone quantity. There is not any mailing tackle. Now they not reply to my assist ticket requests. I consider this firm is a rip-off.

December 22, 2021

I put in a bit 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 at the time of penning this e mail). Error messages when trying 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.

November 1, 2021

About 2 months in the past, a cryptocurrency investing app – Blockfolio was bought to FTX. At that point, the Blockfolio app required an replace and adjusted to the FTX app. At that point, I misplaced the skill to log into my account. I’ve logged many tickets with their tech assist website and did work with one one that helped me change my password so I might log into my account. However, my account now exhibits a $0 steadiness. Company’s web site offers not contact data (no telephone quantity or tackle) past the skill open a hassle ticket. I’ve opened a number of tickets explaining the situation and requesting a name again from a stay agent, however no response. I’m certain 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 criticism with the buying and selling fee. Thank you.

November 30, 2021

I’ve made few deposits that provides as much as 1600$ in FTX. The platform acknowledged 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 enable me to withdraw. It takes no time to deposit however crazily lengthy course of to withdraw.

November 2, 2021

Blockfolio was cryptocurrency app I used to spend money on 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 downside doing so however it 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 firm. Loads 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 hold occurring to different individuals. Please contact me at [redacted] with any questions or issues. Thank you.

October 20, 2021

On Sunday October 17 at 11:00pm my FTX crypto account was both hacked or stolen by the alternate. 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.

October 16, 2021

Access to my account was modified throughout an app replace. I reached out to [email protected]. it was very poor assist. It took months to get a reply. I used to be requested to contact [email protected], I’m nonetheless ready for a response on my issues. I used to be suggested ftx has no report of my account. I’ve a affirmation e mail, assist emails and financial institution information that assist I do I’ve an account. I had simply over 13 SOL crypto cash which I even have display screen photographs of. Any help could be enormously appreciated.

August 23, 2021

In June 2021 I deposited $800 to purchase cryptocurrency. I used to be advised 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 replica 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 in the standing. I wrote them once more on a brand new thread which issued me a brand new hassle ticket quantity. I used to be advised by one customer support particular person 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 appeared 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 well their funds. Each of us has deposited sufficient to be value tens of hundreds of {dollars} in the close to future.

May 14, 2021

On 5/6/2021 I despatched a wire switch with the intention to alternate these funds for crypto belongings like Bitcoin. I’ve verified from my financial institution that they’ve acquired the funds, however the alternate 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 per week. They don’t reply my emails however despatched a notification that they’ll maintain on to my funds. I’ve no recourse.

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