Crypto exchange Crypto.com mistakenly sent 320,000 ETH to a wallet address associated with Gate.io end of October 2022. Although the platform has since recovered the assets, Binance CEO Changpeng Zhao advised users to stay away from the platform.
L’the unprecedented collapse of FTXwhich was previously the third largest cryptocurrency market and earned a reputation as the king of crypto bailouts during the last crypto winter, led many players in the sector to express their concern about the credibility of centralized players.
In an attempt to answer this skepticism, Crypto platform executives have started sharing proof of bookings. Thus, Crypto.com published its addresses, revealing how much and which cryptocurrencies it stores on behalf of its customers.
However, users were quickly identified a suspicious transfer of 320,000 ETH to a wallet linked to Gate.io on October 21, 2022mainly because the exchange claims that all user-owned cryptocurrencies are kept offline in cold storage in partnership with The book of the book.
Crypto.com CEO Kris Marszalek has revealed that the transaction was a mistake. “It was supposed to be a delivery to a new cold storage address, but it was delivered to an external exchange address that was whitelisted,” he said, adding:
“We worked with the Gate team and the funds were then returned to our cold storage. New processes and features were put in place to prevent this from happening again.”
Despite the explanation, the crypto community remains with a bitter taste towards the platform. Many users even questioned how it was possible to accidentally send $400 million worth of ETH to an address that was the wrong recipient.
This is not the first time that Crypto.com has made such a mistake. In August, the exchange made headlines after it was revealed that it had happened by accident Posted AU$10.5 million (worth over US$7 million) to Melbourne-based investors in lieu of a AU$100 (US$67) refund. What’s worse is that the incident happened in May 2021 and went unnoticed until December 2021.
For his part, Binance CEO CZ, who made conversation from him recently due to his involvement in the FTX saga, advised users to stay away from Crypto.comclaiming that what had just happened was a clear sign of their lack of competence.
“If an exchange needs to move large amounts of crypto before or after they reveal their wallet addresses, that’s a clear sign that there are problems. Stay away from them. Stay SAFU,” he said.
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