Ripple CTO Joins Criticism of FTX’s Strict KYC Measures

• Ripple CTO highlights recent SEC legal setbacks amid FTX’s KYC controversy.
• FTX’s strict KYC checks have led to creditor rejections due to mismatched financial records.
• Bitcoin payouts to FTX creditors will be based on a lower valuation than the current market price.

FTX’s intensified KYC verification process has sparked controversy among creditors, with some facing rejections due to discrepancies in reported holdings. This situation has fueled broader concerns about exchange transparency and user rights in the crypto community, particularly as Ripple’s CTO highlighted the recent legal challenges faced by the SEC.

What, and I cannot stress this enough, the f*ck?! https://t.co/NYX9Sn7Bvk

— David "JoelKatz" Schwartz (@JoelKatz) June 28, 2024

David Schwartz, posted on X about the frustrations faced by creditors. Yet another user expressed disbelief after FTX allegedly revoked their KYC status for having more funds on the platform than in their bank accounts. This move has sparked criticism, with many users calling it unreasonable and counterproductive.

Additionally, Daniel Sempere Pico, highlighted a specific issue regarding Bitcoin payouts. According to …

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