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of Collapse of FTX He urged major cryptocurrency exchanges to publish their cold and hot wallet addresses, emphasizing the importance of proof of reserves in reducing risk and improving investor confidence. When trying to check the availability of funds on Crypto.com, cold store information revealed him a suspicious transfer of 320,000 Ether (ethereum) to your Gate.io-linked wallet address on October 21, 2022.
Community member @jconorgrogan said, Migration Of the 320,000 ETH from Crypto.com’s cold wallets to Gate.io, the former claims 100% of user-owned cryptocurrencies are held offline in cold storage in partnership with hardware wallet provider Ledger. Considering that
While the debate rages on, Kris Marszalek, CEO of Crypto.comrevealed that the funds representing 82% of Crypto.com’s ETH held in cold storage at the time of writing were mistakenly sent to Gate.io.
“This was supposed to be a move to a new cold storage address, but was sent to a whitelisted external exchange address.”
However, Marszalek has confirmed that Gate.io has returned the funds to Crypto.com’s cold storage and reassured investors that new processes and features have been implemented to prevent a recurrence.
why https://t.co/bVgf3bBSGR would send back https://t.co/2vZHyCacXG 285,000 ETH in 5-7 days? pic.twitter.com/GhH6QGXntd
Connor (@jconorgrogan) November 12, 2022
On-chain data confirms that Gate.io has returned 285,000 ETH to Crypto.com, but Marszalek said all funds have been returned. Further investigation revealed that his missing 35,000 ETH was sent to a different address, which has yet to be confirmed by the crypto exchange.
This isn’t the first time Crypto.com has made headlines for an accidental money transfer. Back in August 2022, Crypto.com Accidentally Transferred AUD 10.5 Million (valued at over $7 million) to a Melbourne-based investor, which would have resulted in a payout of A$100 ($67). This incident occurred in May 2021, but was not discovered until the December 2021 annual audit.
Related: Crypto.com promises proof of reserves after halting FTX-backed Solana deposits and withdrawals
Marszalek has promised to release Crypto.com’s audited proof of reserves on November 10, emphasizing the importance of transparency and user safety.
We share the belief that crypto platforms should publicly share evidence of their reserves. https://t.co/pFc4Pz9nFR will issue our Audited Proof of Reserves.
Chris | Crypto.com (@kris) November 10, 2022
With most crypto businesses willing to share proof of their reserves, investors have the opportunity to verify the existence of their funds, ultimately preventing business owners from misusing their cold storage funds.
