David Schwartz, Ripple Labs CTO, has expressed his indignation over a case involving a former FTX user’s failed attempt to withdraw funds from the now-defunct FTX crypto exchange. Ripple’s CTO vented on an X post which referenced the challenge the user went through.
Ripple CTO Shares Strong Reaction to FTX Flaws
The user, jmo@cuntycakes123 shared a screenshot of the emails he received from FTX customer support service indicating inability to make withdrawals. In the emails, FTX declined his request as his bank statement contained figures significantly lower than the amount he demanded to withdraw.
According to the email from FTX, “What we need to see is a document showing that you officially earned/or held in your bank account or other assets an amount that is comparable with your FTX claim balance,” KYC Support wrote.
The user, jmo, summarized his frustrating experience with a post saying,
“Apparently if you deposit all your money on FTX you don’t get any back now.”
Schwartz, known for his candid opinions on social media, did not hide his anger and disappointment in his recent comments about FTX. The Ripple CTO used strong language stating to convey his displeasure about the situation.
Schwartz had in the past given scathing criticism of FTX over their handling of issues. He once revealed having some crypto left on his FTX account, amounting to roughly $2,500, although he did not provide further details.
The Fallout from FTX’s Collapse
FTX collapsed in November 2022 after its founder and CEO, Sam Bankman-Fried, was accused of defrauding investors. After a highly-televised trial last year, he was subsequently imprisoned earlier this year. Following the collapse, some users are still trying to retrieve their funds trapped in FTX wallets.
Crypto-Vanguard recently reported how three different entities are squabbling and claiming ownership of some of the assets confiscated from Bankman-Fried. The assets worth an astonishing $11 billion include two private jets and funds in banks. All of these are being consolidated by the FTX Estate to repay investors.
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