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Friday, February 3, 2023

Crypto.com Accidentally Sent 320K ETH To Gate.io: Fund Has Been Recovered The Day After

The Director of Crypto.com acknowledged the restoration of the money and informed the shareholders that new procedures and features had been put in place to avoid a repeat of the incident.

Leading cryptocurrency exchanges are being urged to openly reveal their hot and cold wallets after the collapse of FTX underlined the value of evidence of reserve in reducing risks and boosting investor trust. Cold storage data that was discovered when attempting to verify the existence of money on the firm showed a questionable transaction of 320k Ether to a digital wallet connected to Gate.io on October 21, 2022.

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Concerns were expressed by community jconorgrogan over the transfer of 320k ETH out from cold wallet of the firm to the one of Gate.io, as the latter states that all consumer owed cryptocurrencies are held exclusively offline in deep freeze in collaboration with hardware wallet supplier Ledger.

As the conversation heated up, business Owner Kris Marszalek disclosed that the money, which at the moment of publication represented 82% of the company’s ETH holdings in cold storage, had been transmitted to Gate.io by mistake.

Crypto.Com Accidentally Sent 320K ETH Crypto To Gate.io:

A representative for the firm explained to Cointelegraph that perhaps the company was the owner of the taken offline address on Gate.io. The CEO of Crypto.com  told the shareholders that new procedures and features had been put in place to prevent a recurrence and verified that Gate.io had restored the monies to Crypto.com’s deep freeze.

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On-chain evidence shows that Gate.io  return 285k ETH, however Marszalek claimed that all money was given back. Further research revealed that the lost 35k ETH was transmitted to a separate address, which even the cryptocurrency exchange has not yet acknowledged.

Marszalek later clarified what happened in a set of tweets, reiterating that each of Crypto.com’s activities were running well.

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