Market Analysis Report (14 Nov 2022)

Crypto.com mistakenly sent more than 320,000 ETH, worth over $400 million, to a rival cryptocurrency exchange last month, according to its CEO Kris Marszalek. The other exchange, Gate.io, returned the funds shortly after.

Per Marszalek, the transaction was a result of human error, as someone erroneously sent about 80% of the ETH in their reserves to a “whitelisted exchanges.” The funds had been scheduled to move to a new cold wallet. The CEO said:

“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 the Gate team and the funds were subsequently returned to our cold storage.”

The incident comes at a time in which trust in centralized exchanges has been severely affected as a result of the collapse of FTX. Blockchain data shows that over 90,000 unique transactions have been processed from Crypto.com’s wallets since the incident was spotted.

Last year, a Crypto.com employee erroneously transferred more than $7.1 million to a customer, with the firm later on suing the person for the return of the funds.