Monday, November 28, 2022
HomeCrypto$400 million mistakenly sent to Gate.io - Crypto.com in trouble

$400 million mistakenly sent to Gate.io – Crypto.com in trouble

Did you say professionalism? – As each passing hour brings a new twist to the FTX affair – SBF has just been put under surveillance in the Bahamas just after his platform experienced a hack historic. Here we learn it Crypto.com mistakenly sent $400 million to Gate.io on October 21, or nearly 80% of all ETH held by the platform. The money was returned by the competitor a few days later.

Crypto.com has already excelled in the past in terms of transmission errors. For example, a client had received $10 million after requesting a $100 withdrawal.

This time, the exchange sent $400 million worth of ETH to the “wrong address”. Address that turned out to belong to a competitor, Gate.io, which agreed to return the funds.

Crypto.com’s outgoing transaction on Etherscan

According to Crypto.com CEO Kris Marszalek who spoke on Sunday November 13 on Twitter in this regard, this operation follows a unfortunate handling error which led to the funds going out the door via a withdrawal address already whitelisted while the stock exchange wanted to deposit the same sum on a new one cold wallet.

The head of Crypto.com assured that new procedures had to be implemented to make sure it doesn’t happen again. Everyone will have their own opinion on the seriousness of this statement…

ETH funds from crypto.com customers mistakenly moved to Gate.io

On his side, Changpeng Zhaoaka CZ, head of Binance, guest users to avoid exchanges that transfer large amounts after or during their audits, which he says are signs of serious problems.

Still, all this fuss about crypto exchanges, from FTX to Crypto.com, should invite users to be cautious and prefer the use of cold wallets, a solution also presented via CZ.

In crypto, do not skimp on caution! So to keep your crypto assets safe, the best solution is still a personal hardware wallet. At Ledger, there is something for all profiles and all cryptos. Don’t wait to secure your capital (commercial link)!

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