$400 Million Mistakenly Sent to Gate.io – Crypto.com in Trouble

Did you say professionalism? – As every hour that passes brings a new twist to the FTX affair – SBF just placed under surveillance in the Bahamas just after his platform experienced a hack historical. Here we learn that Crypto.com just mistakenly sent $400 million to Gate.ioor nearly 80% of all ETH held by the platform.

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

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 who agreed to return the funds.

According to the Crypto.com CEO Kris Marszalekthis operation follows a unfortunate handling error which led to the funds going out the door via a withdrawal address already whitelisted while the exchange wanted to deposit this same sum on a new cold wallet.

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

On his side, Changpeng Zhaoaka CZ, boss of Binance, guest users to shun exchanges that transfer large amounts after or during their audits, which he says is indicative of serious problems.

Anyway, all this fuss around crypto exchanges, from FTX to Crypto.com must invite users to be cautious and prefer the use of cold wallets, a solution also put forward via CZ.

In crypto, do not economize 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. Do not wait to put your capital in safety (commercial link)!

Leave a Comment