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Plaid Halted FTX.US Access to Wser Info Following ‘Concerning’ Reports

| 13-Th11-2022

Plaid reportedly issued a Twitter post detailing its suspension of crypto exchange FTX’s access to Plaid products on Nov. 12, meaning that “FTX can no longer retrieve any financial information via Plaid.”

Specifically, Plaid reportedly functions as a fintech establishment that offers supporting features for communication between financial services apps and users’ banks and credit card providers.

In FTX.US’ case, its products reportedly makes it possible for FTX.US clients to connect their bank accounts to the FTX app, which subsequently enables FTX.US to request payments that will be processed by the ACH network.

Plaid reportedly issued an official announcement via Twitter with details of its suspension of FTX’s access to Plaid products, as of approximately 6:30 am UTC on Nov. 12, meaning that “FTX can no longer retrieve any financial information via Plaid.”

Via a previous Tweet, Plaid revealed that the suspension was because of “concerning public reports,” though noted that there is “currently no indication that Plaid has been used as a vector for fraudulent activity.”

On Nov. 12, Twitter users started reporting that FTX.US had tried to tap into their accounts via Plaid. Reports so far only suggest that the users’ data has been accessed, and with no further confirmation of fund removal in any accounts. 

The firm has reportedly issued warnings to customers to change their bank account passwords right away, and to revoke access rights on Plaid.

In an FAQ, Plaid also suggested that a few of these access requests could be included in the automated financial information checks carried out by Plaid, which are conducted on a regular basis.

It has also reiterated that since suspending access, FTX has not been successful in retrieving any data from Plaid accounts.

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