Crypto.com recently admitted to making another massive error: it sent 320,000 Ethereum to another cryptocurrency exchange called Gate.io about three weeks ago by mistake.
Crypto.com CEO Kris Marszalek stated on Twitter that the company was supposed to send the cryptocurrency to one of its offline, wallets. But instead sent it to a “whitelisted” address belonging to its corporate account at Gate.io.
All of this happened after Marszalek made public the company’s cold wallet addresses. And the reason was to provide transparency about what the exchange does with its funds. Conor Grogan, a user who investigated Crypto.com’s transactions, discovered that the exchange sent 320,000 in Ethereum to Gate.io on October21st.
Marszalek later stated that it had recovered “the entirety” of the transferred assets. Users on Twitter confirmed that Crypto.com’s funds were returned about a week later, with 285,000 Ethereum transferred into one wallet. And the remaining 35,000 Ethereum was transferred to another.
Gate.io stated that it began returning funds once it realized the transfer was “an operation error. But, hey, at least Crypto.com’s money was returned this time. In August, Crypto.com gave a customer $7.2 million instead of a $68 refund, which it is currently suing to recover.
Despite Marszalek’s assurances that “all our systems are operating normally,” the entire ordeal is causing withdrawals from the platform. The users begin to fear that Crypto.com will follow in the footsteps of the now-bankrupt FTX and other beleaguered firms. Some users speculate that the transfer was made to change the proof of reserves.
Gate.io released its asset stating that “Crypto.com’s deposit was not included,” Crypto.com provided partial proof of reserves on November 11th.