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CryptoCom Accidentally Sends $400 Million Worth of ETH To Gate, Funds Recovered Later

Summary:
FTX’s collapse stirred the cryptocurrency market in a way that not many expected, but there’s some silver lining, however tiny it may seem. For once, most of the leading exchanges decided to go ahead with their proof-of-reserves and published the majority of their addresses that contained the funds stored on their platforms. CryptoCom is one of the exchanges that published their addresses, showcasing how much and what cryptocurrencies it stores on behalf of its customers. However, quickly after the information went public, members of the crypto community discovered a transaction for a whopping 320,000 ETH sent out from one of the exchange’s addresses. This represented roughly 80% of the ETH stored on CryptoCom. The company’s CEO, Kris Marszalek, gave an explanation of what

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FTX’s collapse stirred the cryptocurrency market in a way that not many expected, but there’s some silver lining, however tiny it may seem.

For once, most of the leading exchanges decided to go ahead with their proof-of-reserves and published the majority of their addresses that contained the funds stored on their platforms.

  • CryptoCom is one of the exchanges that published their addresses, showcasing how much and what cryptocurrencies it stores on behalf of its customers.
  • However, quickly after the information went public, members of the crypto community discovered a transaction for a whopping 320,000 ETH sent out from one of the exchange’s addresses.
  • This represented roughly 80% of the ETH stored on CryptoCom.
  • The company’s CEO, Kris Marszalek, gave an explanation of what happened:

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.

  • Despite the explanation, the community is left with a sour taste as to how it is possible to accidentally send a whopping $400 million worth of ETH to an address that was not the designated receiver.
  • This is not the first time CryptoCom makes a mistake of this kind.
  • Last year, the exchange accidentally sent $10M to a woman instead of $100. The more alarming thing is that it didn’t discover the mistake for a whopping 7 months.

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