FTX's Terms of Service Bar Company From Seizing User's Crypto, Lawyers Say
According to its own terms of service, embattled crypto exchange FTX is not permitted to grab user funds, lawyers say.
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FTX has allegedly taken billions of dollars in cryptocurrency from users to shore up FTX’s sister trading entity Alameda Research, which is also owned by FTX CEO Sam Bankman-Fried.
But lawyers digging into FTX’s terms of service point out that this may amount to theft.
The FTX terms of service reads: crypto in FTX user accounts are not “the property of, or shall or may be loaned to, FTX Trading.” It adds that the crypto exchange “does not represent or treat Digital Assets in User’s Accounts as belonging to FTX Trading,”
The terms of service also guarantee that the user “control[s] the digital assets.” It also reassures users that they can withdraw their crypto "at any time, subject to outages or downtime."
