Ripple’s CTO David Schwartz recently expressed his frustration over a case of attempted funds withdrawal from the now-defunct FTX crypto exchange. This exchange collapsed in November 2022 due to allegations of fraud against its founder and CEO, Sam Bankman-Fried. Users have been struggling to retrieve their funds from FTX, with some facing difficulties in withdrawing their crypto assets.
One former FTX user, @cuntycakes123, shared his experience of trying to withdraw his funds from the exchange. FTX customer support refused to approve his withdrawal request, citing discrepancies in his bank statement. They asked for a statement from the bank that matched the requested withdrawal amount, leaving the user in a difficult situation.
David Schwartz reacted strongly to this, expressing his disbelief and frustration at the situation. He retweeted @cuntycakes123’s post and condemned FTX for its actions. Schwartz has been vocal about his negative opinions on FTX in the past, given the exchange’s troubled history and the challenges faced by users in accessing their funds.
In addition to criticizing FTX, Schwartz also warned the crypto community about a new scam involving fake FTX support staff. These scammers were luring users with promises of expediting their compensation claims by connecting their wallets to FTX through phishing links. Schwartz urged users to be cautious and not fall for such scams, highlighting the importance of vigilance in the cryptocurrency space.
Schwartz’s comments shed light on the ongoing issues faced by users of the collapsed FTX exchange and the challenges they encounter in recovering their funds. The case also serves as a cautionary tale for the wider crypto community, emphasizing the risks associated with fraudulent schemes and the importance of verifying the authenticity of communication from exchanges and support services.
As the crypto industry continues to evolve, incidents like the collapse of FTX and the emergence of scams underscore the need for stronger regulatory measures and investor protection mechanisms. David Schwartz’s outspokenness on these issues serves as a reminder for users to remain vigilant and informed in their interactions with cryptocurrency exchanges and service providers.
