Crypto.com has made a clerical error mistakenly sending 320,000 in Ethereum (c.$416 million) to another cryptocurrency exchange, called Gate.io, about three weeks ago.
According to Crypto.com CEO Kris Marszalek, the company was supposed to send the crypto to one of its cold or offline wallets but instead sent it to a ‘whitelisted’ address belonging to its corporate account at Gate.io.
This all unfolded after Marszalek publicly posted the company’s cold wallet addresses to provide transparency about what the exchange does with its funds.
Marszalek later added that it was able to recover “the entirety” of the transferred assets.
Gate.io has reportedly started returning the funds once it realized the transfer was “an operation error.” It seems that this is not the first unfortunate event that Crypto.com has experienced, as in August, a typo resulted in Crypto.com giving a customer $7.2 million instead of a $68 refund.
This affair comes after the collapse of FTX and Bankman-Fried’s trading shop Alameda Research. The event sparked surprise in the industry as the platform was once viewed as a core pillar of the market.
Now, large numbers of traders are removing funds from the digital asset market, with trading venues like Binance, OKX and Deribit committing to publish proof of sufficient reserves to match the liabilities of customers.