The exchange of cryptocurrencies Crypto.com mistakenly sent 320,000 ETH to a linked wallet address Gate.io end of October 2022. Although the platform has since recouped the resources, Binance CEO Changpeng Zhao has advised users to steer clear of the platform.
The unprecedented collapse of FTX, which was previously the third largest cryptocurrency exchange and which earned a reputation as the king of crypto bailouts during the recent crypto winter, has resulted in many industry players to express their concern for the reliability of centralized actors.
In an attempt to respond to this skepticism, Crypto platform executives have begun sharing proof of bookings. Thus, Crypto.com has published its addresses, revealing how much and what cryptocurrencies it stores on behalf of its customers.
However, users quickly identified themselves a suspicious transfer of 320,000 ETH to a Gate.io-linked wallet on October 21, 2022especially since the exchange claims that all user-owned cryptocurrencies are kept offline in cold storage in partnership with Ledger.
Crypto.com CEO Kris Marszalek revealed that the transaction was a mistake. “It was supposed to be a send to a new cold room address, but it was sent 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 rooms. 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 asked how it was possible to accidentally send a whopping $ 400 million worth of ETH to an address that was the wrong recipient.
This isn’t the first time Crypto.com has made such a mistake. In August, the exchange made headlines after it revealed it had accidentally sent AU $ 10.5 million (worth more than $ 7 million) to Melbourne-based investors instead of a refund of AU $ 100 ($ 67). USA). What’s worse is that the accident happened in May 2021 and went unnoticed until December 2021.
For his part, Binance CEO CZ, who was recently in the news for his involvement in the FTX saga, advised users to stay away from Crypto.comarguing that what had just happened was a clear sign of their incompetence.
“If an exchange needs to move large amounts of cryptocurrencies before or after showing their wallet addresses, it’s a clear sign that there are problems. Stay away from them. Stay SAFU,” he said.
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