If you direct deposited money in FTX in the last 60 days, you can phone your bank and tell them you want a refund according to Section E of CFPB Regulations, and the bank can not refuse.

Not sure how many of you this would help, but figured I’d post it just in case. Silvergate, the payment processor FTX used, would pay for the refund. They took the risk, so it’s on them to refund. This will help keep those deposits out of the bankruptcy fiasco. I didn’t know this until I saw it earlier today on Bloomberg.

This is for the US, so FTX US, but I assume other countries most likely have similar laws. Here is the link to the CFPB site so you can check it out for yourself if you want to. I hope everyone involved in all of this gets the best possible outcome. Crypto has been crazy lately, stay strong all. Enjoy the weekend.

https://www.consumerfinance.gov/rules-policy/final-rules/code-federal-regulations/

Edit. Silvergate, not silverfish

If you direct deposited money in FTX in the last 60 days, you can phone your bank and tell them you want a refund according to Section E of CFPB Regulations, and the bank can not refuse.

50 thoughts on “If you direct deposited money in FTX in the last 60 days, you can phone your bank and tell them you want a refund according to Section E of CFPB Regulations, and the bank can not refuse.”

  1. Government regulation pros & cons and related info are in the collapsed comments below. Pros and cons will change for every new post. Submit a pro/con argument in the Cointest and potentially win Moons. Moon prizes by award for the General Concepts category are: 1st – 300, 2nd – 150, 3rd – 75, and Best Analysis – 500.


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  2. I did not know this and I would bet a lot of people are unaware. Good work OP. It’s worth spreading this message.

  3. I don’t have an FTX account but thank you for this info – should be sticky for a few weeks if someone can confirm it works.

  4. The bank will file your request, of course they can’t deny your request…

    They can require a police report, an investigation, mediation, settlement, arbitration and all the other terms of your account that you agreed to when opening the account and every time they mailed you all the new updated terms of your account that you agreed to by continuing to bank with them.

    Good luck

  5. Good info OP. Im sure this can help at least some people recoup a small portion of what they lost.

  6. This is a good post they just had a guy on Bloomberg that covered all the ways you could redeem from FTX if it was a deposit within 60 days

  7. I don’t believe this is how reg e works. You have to be tricked into sending the money. If you meant to send the money to the recipient the reversal right does not exist. People meant to send the money. What they bought was just stupid. Bank is probably not responsible.

  8. Not a bad try but I would not expect to get a refund. Banks will be banks and find a way to not give a refund.

  9. Unfortunately this is false. This rule only applies to fund transfer errors.

    Definition of error –

    (1) Types of transfers or inquiries covered. The term “error” means:

    (i) An unauthorized electronic fund transfer;

    (ii) An incorrect electronic fund transfer to or from the consumer’s account;

    (iii) The omission of an electronic fund transfer from a periodic statement;

    (iv) A computational or bookkeeping error made by the financial institution relating to an electronic fund transfer;

    (v) The consumer’s receipt of an incorrect amount of money from an electronic terminal;

    (vi) An electronic fund transfer not identified in accordance with § 1005.9 or § 1005.10(a); or

    (vii) The consumer’s request for documentation required by § 1005.9 or § 1005.10(a) or for additional information or clarification concerning an electronic fund transfer, including a request the consumer makes to determine whether an error exists under paragraphs (a)(1)(i) through (vi) of this section.

    Notice of error from consumer –

    (1) Timing; contents. A financial institution shall comply with the requirements of this section with respect to any oral or written notice of error from the consumer that:

    (i) Is received by the institution no later than 60 days after the institution sends the periodic statement or provides the passbook documentation, required by § 1005.9, on which the alleged error is first reflected;

  10. I don’t think this works if the person actually authorized the transfer. This refund only applies to “unauthorized electronic fund transfers” – aka someone other than you. So for those whose funds were somehow hacked from their account, then yes, I think you have a chance for refund, but for most who lost the funds due to inability to remove funds from exchange and personally authorized the preceding deposit into said exchange – outta luck.

    At least that’s my interpretation when I read the full text.

  11. Making big fiat deposits to the rest of the sinking exchanges and immediately withdrawing as crypto to offramp on binance, brb.

  12. I don’t want to be a party breaker but there is 95% chance they will just deny your request…

    I wish you all good luck!

  13. I called my bank, and they said that they aren’t able to dispute the transfer since it was authorized. They didn’t know about section E of the CFPB or care

  14. Might work, might not.
    I know shit all about US regulations or banks

    This comment chain indicates that this information is false. Also has a video link from OP:
    Unfortunately this is false. This rule only applies to fund transfer errors.

    As always DYOR and don’t rely on random redditors for financial advice.

    Also:
    Best case scenario your bank reverses your reversal and charges you a fee for filing a fraudulent ACH reversal. Worst case, you get sued by Silvergate or FTX lawyers decide to press criminal charges against you for wire fraud.

    So yeah, oof

  15. As others have said don’t do this. Best case scenario your bank reverses your reversal and charges you a fee for filing a fraudulent ACH reversal. Worst case, you get sued by Silvergate or FTX lawyers decide to press criminal charges against you for wire fraud.

    Voyager customers who did an ACH reversal have been sent emails from lawyers threatening lawsuits and potential criminal charges.

  16. Posting here for more visibility.

    Read this article. This will give you an overview on how Reg E is applied vs how Nacha rules for ACH reversals can occur.

    https://www.nacha.org/news/which-60-days-it-understanding-different-periods-regulation-e-and-nacha-rules

    Your bank may be able to reverse an ACH transaction based on Nacha Operating Rules. Financial institutions have an agreement with The Clearing House or Federal Reserve (ACH operator) to transmit Entries on the ACH network on behalf of the originator. There are specific rules that address how ACH return codes are applied and processed. And it is my understanding, this is an automated process and a general agreement and understanding with other members on the ACH network that allows for reversals and returns to process within 60 days of the transaction occurring.

    In theory, your bank could process an ACH return by selecting the R10/R11 reason code and the funds would be automatically reversed. Nacha has updated their guidance and it appears it repurposed its R11 code for “errors” vs R10 for unauthorized transfers. I am not sure if this will work, most bankers and customer representatives are not verse in Nacha guidelines. But it is worth a shot to use similar jargon as defined by Nacha when submitting a request for an ACH reversal. This only applies to ACH transactions. You are SOL on remittance transfers (wires) and debit/credit transactions. I hope this helps but Regulation E doesn’t guarantee a refund.

    https://www.nacha.org/rules/differentiating-unauthorized-return-reasons

  17. Hate to say that this is just not how it works. People have made shitty investments with shitty companies and shitty people since that dude in Mesopotamia complained about his bronze purity or some shit.

    You sent the money to FTX. That’s not your bank’s fault & they know that. Don’t waste your own time please.

  18. Top post on /r/cryptocurrency is telling people to phone their bank and ask for a refund under consumer regulations, iconic

  19. First, people complain and point fingers when banks block transfers to crypto exchanges (“HOW DARE THEY TELL ME WHAT TO DO WITH MY MONEY?!!!??!!!”). When it all blows up, people then ask the banks to reimburse their funds – after all, the banks took the risk of allowing the transfer.

    You can’t make this stuff up.

  20. If this works I expect a lot of banks to start refusing deposits to crypto exchanges very soon. Certainly have had a similar experience when I bought airline tickets and the airline went bankrupt and cancelled all flights, bank was obligated to refund the money and did so (that was in the UK)

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