Crypto.com returned 320,000 ETH mistakenly sent to Gate.io address

The crypto platform Crypto.com has returned 320,000 ETH (~$396 million at the time of writing) that were mistakenly sent to Gate.io’s address, according to Kris Marshalek, the company’s chief executive.

https://t.co/pFc4Pz9nFR proceeded to withdraw the funds back to its cold wallets over the following days. The entirety of ETH was successfully withdrawn by https://t.co/pFc4Pz9nFR and returned to our cold storage.

— Kris | Crypto.com (@kris) November 13, 2022

On November 11, Crypto.com disclosed information about hot and cold wallet balances. According to the Nansen dashboard, the platform holds more than $2.4 billion in digital assets, with over 22% of the funds accounted for by the meme token Shiba Inu (SHIB).

Following this, some users noted that on October 21, Crypto.com sent 320,000 ETH (~82% of Ethereum on the platform’s balance) to Gate.io’s address. Marshalek said the operation was a mistake.

It was supposed to be a move to a new cold storage address, but was sent to a whitelisted external exchange address. We worked with Gate team and the funds were subsequently returned to our cold storage. New process and features were implemented to prevent this from reoccurring.

— Kris | Crypto.com (@kris) November 13, 2022

\”It should have been moved to a new cold storage address, but was sent to a whitelisted external exchange address. We worked with the Gate team, and the funds were returned to cold storage. To prevent a recurrence of such situations, new processes and features have been implemented,\” he wrote.

Gate.io confirmed the return of funds. The exchange’s founder Li Han noted that the published reserves report does not account for the cryptocurrency received from Crypto.com, as the audit snapshot was taken on October 19.

(2/2) https://t.co/PHnRJkrA9k transferred 320,000 ETH to their https://t.co/fMCiAnzWpj account on Oct. 21 2022 02:52 UTC, 2 days AFTER https://t.co/fMCiAnzWpj had completed the Proof of Reserves.

Check the transaction here👇https://t.co/5aX8BnNVUn

— Lin Han (@han_gate) November 13, 2022

In the wake of bankruptcy of the FTX Group, cryptocurrency exchanges began publishing information about reserves in digital assets. In particular, similar reports have already been published by Binance and Huobi.

In November, Changpeng Zhao warned of a ‘cascading’ crisis in the crypto industry.

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