A Twitter user showed this in a tweet yesterday cryptocurrency exchange Crypto.com on Oct. 21, 320,000 ether (ETH), worth just over $400 million, to another exchange called Gate.io. This amounted to a whopping 82% of Crypto.com’s total ether. The tweeter asked other users if they knew why this extraordinary transaction had taken place.
Does Crypto.com make an ‘error’?
Does anyone know why https://t.co/2vZHyCaKNe would send 320,000 ETH (82% of their ETH today) to https://t.co/bVgf3bCqwp on October 21? pic.twitter.com/2E1NxX1pJz
— Conor (@jconorgrogan) November 12, 2022
From CEO van Crypto.com, Kris Marszalek, he answered to the tweet explaining this transaction:
”It would be one transfer to a new one cold rooms address, but was sent to a whitelist sent external exchange address. We worked with the Gate team and the funds they were then returned to our cold storage. New processes and functions have been implemented to avoid repetition.”
According to Marszalek it would therefore be a matter of human error. The CEO also indicates that the 320,000 ether has also been neatly returned to Crypto.com cold storage. Gate.io also confirmed on Twitter that all ether has been returned to Crypto.com’s cold wallets through multiple transactions.
However, you may first read that this it wasn’t the first time that the exchange made this kind of mistake. In May 2021, an Australian couple unexpectedly received A$10.5 million, worth $6.8 million, from the swap. The couple had used this money to buy four houses, cars, gifts for friends, artwork and furniture to purchase. The court has now ruled that these must be sold immediately and that the proceeds are for exchange.
Binance CEO response
The managing director of BinanceChangpeng Zhao (CZ), through a tweets Also let us know your thoughts on this amazing transaction from Crypto.com
“If an exchange needs to move large amounts of cryptocurrencies before or after proving their wallet addresses, that’s a clear sign of trouble. Stay out. Stay #SAFU.”
Recently you may read that Crypto.com will follow Binance using a backup test politics. On November 11, the exchange has already shared the bitcoins (BTC) and ether addresses.
