Crypto.com Plays Shady Transfer of 350K ETH to CEX

November 13, 2022 at 05:57 PM GST updated: November 15, 2022 at 07:24 AM 2 mins read News

Crypto.com made an unusual transfer of 320,000 Ether to Gate.io
Marszalek commits to releasing Crypto.com’s audited proof of reserves
Crypto.com’s 35,000 ETH assets went to a different address

Top cryptocurrency exchanges have publicly disclosed their cold and hot wallet addresses following the fall of FTX, emphasizing the importance of proving reserves to mitigate risks and increase investor confidence. On Oct. 21, 2022, in an attempt to authenticate the availability of funds on Crypto.com, sources exposed an unusual transfer of 320,000 Ether to an address associated with Gate.io.

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Crypto.com claims that 100% of the cryptocurrencies owned by its users are stored offline using Ledger hardware wallets. The transfer of 320,000 ETH from their cold wallet to Gate.io shocked the crypto community.

Crypto.com CEO Kris Marszalek disclosed that 82% of the cryptocurrency in cold storage at the time of writing had accidentally been delivered to Gate.io.

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

Based on Gate.io’s data, 285,000 ETH were returned to Crypto.com, and Marszalek claims that all assets were returned to Crypto.com. Nevertheless, according to an investigation, 35,000 ETH went to a different address, which will be verified by the crypto exchange soon.

We share the belief that it should be necessary for crypto platforms to publicly share proof of reserves and https://t.co/pFc4Pz9nFR will be publishing our audited proof of reserves.
— Kris | Crypto.com (@kris) November 10, 2022

Marszalek committed to releasing Crypto.com’s audited proof of reserves as part of his commitment to transparency and user safety.

In other news, FTX representatives appeared to corroborate Telegram allegations of a hack. They have allegedly advised customers to remove their FTX applications and stay away from its website.

Late on Friday, more than $600 million in cryptocurrency vanished from the wallets of the defunct cryptocurrency corporation FTX. Soon after, FTX announced that it had been hacked on its official Telegram channel. They further advised users not to install any additional updates.

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