Recently, one of the leading cryptocurrency exchanges in the world “Crypto.com”, accidentally sent multiple million dollars to another exchange in Asia.
However, the exchange claimed that it recovered about $400 million in ether from the Asian exchange Gate.io after accidentally transferring the funds to an incorrect account.
The company planned to transfer 320 thousand ether to a new cold storage address. The funds then were sent “to an external exchange address on the list of permitted addresses,” according to crypto-exchange’s CEO Kris Marszalek on Twitter.
The amount transferred represented over 80% of the total Ether in possession of the exchange – according to a partial reserve test conducted by Marszalek on November 11th.
According to a company spokesperson, the Gate.io wallet address was a corporate account belonging to Crypto.com. The exchange recovered the funds in the following days when Gate.io upped its daily withdrawal restrictions.
The timing of this accident left many investors skeptical. The market is still facing the problems the FTX meltdown is causing in the crypto space. However, Crypto.com was emphatic in stating that the transfer was simply an accident and that it happened days before the FTX scandal.
“The ETH transfers were made over three weeks ago, on October 21st to Crypto.com’s whitelisted corporate account at Gate.io. Crypto.com proceeded to withdraw the funds back to its cold wallets over the following days. “
Raised Concern About the Veracity of Exchange’s Information
The FTX case shed left the community apprehensive about any potentially misleading information.
After all, can investors really trust the information shared by their cryptocurrency exchanges?
In light of that, Professor and Cryptocurrency market analyst Adam Cochran shared his concerns. In a Twitter thread, talking about the problems with the information given by Crypto.com.
Cochrane questioned the exchange’s CEO, by claiming that the addresses posted by Marszalek had no indication of the total customer liabilities and that over $500 million of that amount was in SHIB.
“Everyone wants to believe you, but, with people being hurt, it’s time for us to work as a community and verify where ever possible.” The professor said.
Meanwhile, Changpen Zhao, CEO of the largest cryptocurrency exchange in the world, also had a message for the community.
Without naming names, CZ claimed that investors should not conduct business with exchanges that “move large amounts of crypto before or after they demonstrate their wallet addresses,”.
Binance’s SEO finished his argument by emphatically stating that people should “stay away”.
