Recently, Crypto.com admits to committing yet another extremely significant and worrying clerical error: around three weeks ago, it sent 320,000 in Ethereum (or roughly $416 million USD) to another cryptocurrency exchange named Gate.io by mistake (via Web3 Is Going Just Great).
CEO of Crypto.com Kris Marszalek claims in a tweet that the company unintentionally sent cryptocurrency to a “whitelisted” address associated with its business account at Gate.io when it was intended to send it to one of its cold wallets, or offline wallets.
In order to promote openness about how the exchange uses its cash, Marszalek publicly revealed the company’s cold wallet addresses. Conor Grogan, a user who dug into Crypto.com’s transactions, notes that the exchange moved 320,000 in Ethereum to Gate.io on October 21, which accounts for nearly 80% of the company’s Ethereum assets.
The ETH transfers that generated so much FUD & speculation on Twitter today were made over three weeks ago, on October 21st to https://t.co/pFc4Pz9nFR’s whitelisted corporate account at https://t.co/Mr9GCkL2gV.
— Kris | Crypto.com (@kris) November 13, 2022
Marszalek later clarified that “the full” of the transferred assets might be retrieved. Twitter users reported that around a week later, Crypto.com received their money back, sending 285,000 Ethereum (about 350 million dollars) into one wallet and the remaining 35,000 Ethereum (roughly 43 million dollars) into another.
Gate.io responded as well, stating that after realizing the transfer was “an operating mistake,” it began repaying the money. However, hey, at least this time, Crypto.com’s money was truly repaid. Due to a very unfortunate misunderstanding, Crypto.com sent a client $7.2 million in August instead of a $68 refund; the company is currently seeking to get that money back.
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