CryptoCom transfers $400 million in ETH to Gate

In what seems to be a pattern, CryptoCom has once again delivered the funds in error and subsequently recovered them.

Unexpectedly, the fall of FTX shook the cryptocurrency industry, but there is a silver lining, however little it may seem.

For the first time, the majority of large exchanges chose to proceed with their proof-of-reserves and reveal the bulk of their addresses containing the cash saved on their platforms.

CryptoCom is one of the exchanges that has revealed its wallet addresses, revealing the amount and types of cryptocurrencies it holds on behalf of its users.

However, shortly after the news was made public, members of the cryptocurrency community noticed a transaction for a staggering 320 000 ETH transferred from one of the exchange’s accounts. At that time, this amounted to almost 80% of all ETH held on CryptoCom.

Kris Marszalek, CEO of the firm, provided an explanation for the incident: It was meant to go to a different cold storage, but instead, it went to an external exchange address that was whitelisted. As a result of our cooperation with the Gate team, the funds have been safely restored to our vault. 

The community is still left wondering how $400 million worth of Ethereum could have been sent to an incorrect address, despite the explanation.

When the exchange gave a lady $10 million last year, they meant to send her $100. The fact that it took 7 months to notice the error is much more concerning.

Also Read: Rep. Brad Sherman Requests Tighter Regulation And Criticises “Billionaire Crypto Bros”

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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