June 20, 2024


Plaid Blocks FTX.US from User Data Amid Fraud Reports

In response to “concerning public complaints” of fraudulent conduct, the financial technology company that enables FTX.US customers to add savings accounts to apps has banned access for the US based exchanges to its products.

The fintech company Plaid makes it easier for credit card companies and consumers’ banks to communicate with financial services apps.

In the instance of FTX.US, its solutions enable users to permit FTX.US clients to add their accounts to the app. FTX.US would subsequently be able to request payments to be handled by the ACH network as a result.

In a Tweet that was posted on November 12, Plaid stated that FTX’s accessibility to Plaid products had been suspended as of that morning, which meant that FTX can no longer obtain any financial records via Plaid.

Although it acknowledged that there is at present no evidence that Plaid has been exploited as a route for potential fraud, Plaid stated that the suspension was a result of concerned public reports.

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On November 12, Twitter users started to complain that FTX.US had tried to get into their accounts using Plaid. There have been no instances of money being taken away as of yet; reports solely point to the users’ information having been viewed.

Others have issued warnings to update their account user credentials right away and to remove their access privileges from Plaid.

In a FAQ, Plaid also mentioned that several access requests might be a portion of the automated financial data checks that Plaid performs.

It has also reaffirmed that FTX has been unable to access any data from Plaid accounts since access has been suspended.

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