Members of the crypto community are concerned about Crypto.com reserves. The CEO of Crypto.com said the exchange accidentally sent him 300 ETH to Gate.io.
Recently, blockchain analytics firm Etherscan reported that Crypto.com transferred 320,000 ETH from its wallet to the Gate.io wallet on October 21st. The property was valued at $415.9 million at the time. The Twitter community has been blazing with speculation about the underlying motive behind his October fund transfer between Gate.io and Crypto.com.
The CEO of Crypto(.)com says they accidentally sent $400 million $ETH to the wrong wallet address.
Wildly irresponsible.
Get off these platforms. pic.twitter.com/SABIZPEYWZ
— Dylan LeClair 🟠 (@DylanLeClair_) November 13, 2022
Clarifications by Both Exchanges
Crypto.com CEO Kris Marszalek responded to the allegations that the transfer was made in error and has already been reversed. It was sent to an address that Gate.io can receive by 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
On Twitter, Gate.io confirmed the news. He said that his ETH transferred from Crypto.com was not included in the proof of reserve audit. The company also disclosed a transaction ID proving that Crypto.com received a full refund. Exchanges send money frequently for liquidity reasons. However, the timing of the sale sparked controversy.
Gate.io declared a proof of reserve and made it public source on October 28th. According to reports, Gate.io has enough ETH reserves to overcollateralize investor funds by 104% of his. However, according to the report, proof of reserve audit data was obtained on October 19. This basically means that Gate.io had 320,000 ETH before the audit.
Clarifications on @cryptocom's transfer for the sake of transparency & education:
1) Snapshot for PoR audit taken on Oct 19. https://t.co/a4NJTN8Brj's deposit was not included https://t.co/5U5tZWFfBF
2) All 320K ETH were returned https://t.co/7G5l3YLLIhhttps://t.co/IvyiBu9aBY— Gate.io (@gate_io) November 13, 2022
Marszalek said on Twitter on Nov. 11 that the company has a $3 billion reserve and offers cold storage wallets for both Bitcoin and Ethereum. The move eased concerns about bankruptcy. Marszalek said the company will provide full evidence of its reserves report in the coming days.
Marszalek also wrote a Twitter thread in response to accusations that Crypto.com’s reserves inflated evidence of Gate.io’s reserves.
The ETH transfers that generated so much FUD & speculation on Twitter today were made over three weeks ago, on October 21st to https://t.co/pFc4Pz9nFR’s whitelisted corporate account at https://t.co/Mr9GCkL2gV.
— Kris | Crypto.com (@kris) November 13, 2022
Huobi is also under the Radar
According to blockchain reporter @WuBlockchain, Huobi Global has provided 10,000 ETH to OKX and Binance after providing a snapshot of proof of funds.
As reported by users, the address had 14,858 ETH reserved at the time of the snapshot and 4,044 ETH after the transaction. According to CryptoSlate’s research of his Etherscan data, the above wallet had 18,225 ETH at the time of writing.
Binance CEO Changpeng ‘CZ’ Zhao has sparked suspicion and anxiety among users by warning exchanges of material asset transfers before or after providing proof of funding.
If an exchange have to move large amounts of crypto before or after they demonstrate their wallet addresses, it is a clear sign of problems. Stay away. Stay #SAFU. 🙏
— CZ 🔶 Binance (@cz_binance) November 13, 2022
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