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

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.