Crypto.com exchange slips by $400M in ETH, by mistake. The company was able to recover its funds and promises to prevent such a blunder in the future.
Since the FTX wreck, cryptocurrency exchanges have been in the crosshairs and their transactions scrutinized. For example, a transfer of $400 million in ETH from Crypto.com to another exchange was found.
Gate was the recipient of 320,000 ethers. The operation took place on October 21. The information was confirmed by Crypto.com after the publication of a screenshot of a user on Twitter.
In the current climate of very strong distrust, this transaction has generated a lot of comments on social networks. And it is the CEO of Crypto.com himself who had to intervene to provide explanations.
Kris Marszalek attributes this transfer to another exchange to a human error. A very costly blunder. It is about 80% of the ETH reserves of Crypto.com, kept on a cold wallet, which were transmitted to a wrong address.
It was supposed to be a move to a new cold storage address, but it was sent to an external whitelisted exchange address. We worked with the Gate team and the funds were then sent back to our cold storage,” Marszalek explains.
The executive notes that this erroneous transaction was the cause of much speculation and FUD. After a chaotic week for the crypto industry and for token prices, nothing less surprising.
Since then, we have strengthened our process and systems to better manage these internal transfers,” assures Kris Marszalek.