The Consumer Financial Protection Bureau shares details from crypto customers complaints dating back to 2018, around the time when Bitcoin spiked to insane value.
Of course, the report is timely amidst the controversy that FTX’s bankruptcy has generated. The Verge reported that the document took a whole of 45 pages and was dated October 2018 to September 2022.
The Bureau claimed to have received 8,300 complaints, of which 40 per cent were about scams and fraud. However, while these two are expectedly the biggest problems of the crypto industry, a close second was miscellaneous transaction problems, and the third-highest was about platforms not making users funds available when they promised.
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This last part is one of the issues that customers find problematic. It is just like your bank not allowing you withdraw funds for no good reason.
A quick reminder that the vanquished exchange platform FTX had frozen withdrawals when customers panicked due to reports about its impending doom, which turned out to be accurate. With funds trapped, pending when it solves its liquidity problems (if it ever gets them solved), being able to pause withdrawals at anytime without forewarning users is becoming a thorn in the flesh.
Another example of this happening was when LUNA’s Terraform Labs froze transactions for customers after its founder moved enormous funds out of the company.
The problem is not just when the platform intentionally freezes transactions, sometimes, the CFPB says, there are technical difficulties, especially when large price fluctuations could have earned users huge profit on trades.
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