Check your ioftpd.env, you may be missing the required enviroment variables.
Quote:
8. Add needed enviromental variables into ioftpd.env located in etc:
They might be present already.
STATSSECTION=%[$statssection]
CREDITSECTION=%[$creditsection]
UID=%[$uid]
GID=%[$gid]
SYSTEMPATH=%[$path]
VIRTUALPATH=%[$pwd]
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Double check SYSTEMPATH and VIRTUALPATH.