Crypto.com Accidentally Sent $400M to Rival Exchange

[FMCPAY_GLOBAL]

Sending $400 million worth of Ether to the wrong wallet is not the best way to build consumer confidence when trust in cryptocurrency exchanges is at a post-FTX low. Withdrawals reportedly rose and Crypto.com’s Cronos token fell.

News of Crypto.com’s $400 million “oopsie” couldn’t have come at a worse time.

While it happened last month, news only broke over the weekend that the high-profile exchange accidentally sent $400 million worth of Ether to competitor Gate.io after mixing up one of its own corporate account wallets on that platform with a new Crypto.com cold wallet.

Coming as trust in centralized exchanges has been badly damaged by the collapse into bankruptcy of FTX and FTX US — as shown by the record number of crypto owners finally heeding long-standing industry advice to self-custody their funds in private cold wallets — the error “generated so much FUD & speculation on Twitter,” according to CEO Kris Marszalek, that he was forced to explain what happened.

In brief, he said in a Nov. 12 Twitter thread that the 320,000 ETH were sent to a whitelisted address in its custody system — just the wrong one:

“Fund movements from Crypto.com custody systems are only possible between approved and whitelisted addresses attached to our cold wallets, our hot wallets and our corporate accounts at 3rd party exchanges […] In this particular case the whitelisted address belonged to one of our corporate accounts in a 3rd party exchange instead of our cold wallet.”

(Source: Coinmarketcap)

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[sabre_labs]

Accidents can happen and especially at a time such as this.

However, occam razor. There may be something at play that is currently not being said and best/safest to always not keep anything on exchanges, have your own keys!

[Bitcoin_Arena]

Why is crypto.com making such gave mistakes time and time again?
There was news sometime back that the same exchange accidentally transferred $10.5M to a customer

What is funny in this recent saga is that Gate.io used the accidentally transferred funds as proof of reserve before sending it back to crypto.com... Lol

[Findingnemo]

But if its sent to an exchange then there is chance to recover the funds with the help of legal actions but the centralized exchanges became more lethargic when it comes to managing the funds and of course its not their own money but they due hold the responsibility of keeping it safer so making such silly mistakes can't be given as an excuse. With such mistakes the other exchanges are growing stronger and also started to feel like monopoly.

[livingfree]

Kris, the CEO of crypto.com has answered this through his twitter account.

https://twitter.com/kris/status/1591741801245052928

Go through his tweet as it's a series of tweets so, there goes his explanation along through with the "fud" that's made people worry about them too.

[ultrloa]

Kris, the CEO of crypto.com has answered this through his twitter account.

https://twitter.com/kris/status/1591741801245052928

Go through his tweet as it's a series of tweets so, there goes his explanation along through with the "fud" that's made people worry about them too.

Some manipulators just using some incidents just to create more fuds so that they can get better position and gain more money if bitcoin recovers. And people need to have critical thinking so that they will not get easily burned out by fuds spreader out by person who want to take advantage on some situations.

[MainIbem]

Why is crypto.com making such gave mistakes time and time again?
There was news sometime back that the same exchange accidentally transferred $10.5M to a customer

What is funny in this recent saga is that Gate.io used the accidentally transferred funds as proof of reserve before sending it back to crypto.com... Lol

Exchange to exchange can be retrievable better they could write to them it can be reversed back, instead of. But my question is why are such profile exchange make such huge mistake or even sending funds to customers address without making full confirmation of the address.
Now what could possibly results to this careless mistake?
Could it be errors from keyboard or what is the actual issues that arises and this is not coming common with tie 1 exchange like binance.

[uneng]

What is funny in this recent saga is that Gate.io used the accidentally transferred funds as proof of reserve before sending it back to crypto.com... Lol

Gate.io claimed they didn't use the deposit made by Crypto.com as proof of reserve:

https://twitter.com/gate_io/status/1591723648691441665?t=EfCAPDzxdHyYthWo-PgbBQ&s=19

Kris, the CEO of crypto.com has answered this through his twitter account.

https://twitter.com/kris/status/1591741801245052928

Go through his tweet as it's a series of tweets so, there goes his explanation along through with the "fud" that's made people worry about them too.

Some manipulators just using some incidents just to create more fuds so that they can get better position and gain more money if bitcoin recovers. And people need to have critical thinking so that they will not get easily burned out by fuds spreader out by person who want to take advantage on some situations.

Manipulation by rivals or not, this incident is worth to be mentioned. Red flags must be risen and investors plus customers must be told what is going on in real time, especially when the exchanges are going shady, doesn't matter if it is on purpose or accidentally. After all, people have thousands, hundreds of thousands or even millions invested on platforms like Crypto.com.

I can't blame manipulative rivals on this situation. It was Crypto.com's fault to have given reasons to their opponents to launch a red flag campaign against them.