The collapse of FTX highlighted the importance of proof of reserves in mitigating risks and increasing investor confidence, prompting leading cryptocurrency exchanges to publicly list their hot and cold wallet addresses.
When attempting to confirm the availability of funds on Crypto.com, cold store information disclosed a suspicious transfer of 320,000 ETH on October 21st to a wallet address linked to Gate.io.
Given that Crypto.com claims that all user-owned cryptocurrencies are held offline in cold storage in collaboration with hardware wallet provider Ledger, concerns were understandably raised about the issue.
As the debate heated up, CEO Kris Marszalek revealed that the funds, which accounted for 82% of Crypto.com's ETH in cold storage at the time, were indeed sent to Gate.io by mistake.
On-chain data verifies that Gate.io returned 285,000 ETH to Crypto.com, but Marszalek claims that all funds were restored. Further investigation revealed that the missing 35,000 ETH was sent to a different address, which the crypto exchange has yet to confirm.
Alarmingly, this is not the first time Crypto.com has made headlines due to an unintentional transfer. In August 2022, it was discovered that the company had sent over $7 million to Melbourne-based investors in error, despite the fact that the refund was supposed to be just $67.
Crypto.com Noted Again For Unintentional Crypto Transfers


Subscribe to the CryptoWeekly Newsletter
Get the top stories, funding deals, technical analysis, cryptocurrency jobs and much more delivered to your inbox, every Monday morning.

January 31,2023
4 of the Best Crypto Apps to Check Out in 2023

January 29,2023
Senator Wendy Rogers Wants To Make Bitcoin Legal Tender In Arizona

January 27,2023
Porsche NFT Policies Lead To Confusion As 911 Inspired Tokens Fail To Sell Out

January 26,2023
Bitcoin Is The Best Performing Asset In The World According To Goldman Sachs

January 24,2023
Ethereum Developers Finalize Shadow Fork For Shanghai Upgrade

January 22,2023
Over 30K Scholarships To Be Provided By Binance Charity In 2023

January 22,2023
Stargate Finance Deploys On Metis Andromeda As New Partnership Gets Announced

January 20,2023
Chapter 11 Bankruptcy Decided Upon By Crypto Lending Unit Of Genesis

January 17,2023
3 Interesting Blockchain Project Ideas For Beginners

January 17,2023
New Stablecoin Backed By Gold To Be Launched Via Russia And Iran Collaboration

January 16,2023
Crypto Education On The Rise As Market Begins Slow Road To Recovery

January 13,2023