Crypto.com accidentally sent 320 000 Ethereum tokens to an unknown cryptocurrency address

The CEO of Crypto.com confirmed the refund and assured investors that new processes and features have been implemented to prevent such a mistake from happening again.

Thefall of FTX highlighted the importance of confirming reserves to prevent risks and increase investor confidence, and leading crypto exchanges began to publicly list the addresses of their cold and hot wallets. While trying to confirm the Binance-pidtverdyla-svoyi-krypto-rezervy/">availability of funds on Crypto.com, project managers discovered a suspicious transfer of 320,000 ETH to the Gate. io wallet on October 21, 2022.

Earlier, Crypto.com representatives stated that all user assets are securely protected and stored on a cold Ledger wallet. However, Chris Marsalek, CEO of Crypto.com, confirmed that funds representing 82% of Crypto.com's ETH reserves were accidentally sent to Gate. io: «It was planned to be a move to a new cold storage address, but the assets were sent to an external exchange address.»

Nevertheless, Marshalek said that Gate. io has returned the funds to Crypto.com's cold storage and assured investors that new processes and features have been implemented to prevent a recurrence.

This isn’t the first time Crypto.com has made headlines for an accidental transfer. Back in October 2022, we wrote that Crypto.com accidentally sent 10.5 million Australian dollars (more than 7 million US dollars) to investors from Melbourne (instead of 67 dollars). The incident occurred back in May 2021, but was not detected during the annual audit in December 2021.