My bad. Didn’t check. My fault. Oops. That’s on me. Sorry about that. Darn.
Ever sent your crypto to the wrong address? It sucks. But you probably haven’t made a mistake worth $400 million.
Some poor sap at Crypto.com made a big, big oops. That person accidentally sent 320,000 Ethereum ($ETH.X) to the wrong address. The address was to another exchange, Gate.io. Thankfully, the Gate.io address was a corporate wallet owned by Crypto.com – so it was promptly sent back. But still. That’s a big oops.
The intended recipient was Crypto.com’s cold storage wallet (wallets that are not connected to the internet). Crypto.com CEO Kris Marszalek Tweeted:
The ETH transfers that generated so much FUD & speculation on Twitter today were made over three weeks ago, on October 21st to https://t.co/pFc4Pz9nFR’s whitelisted corporate account at https://t.co/Mr9GCkL2gV.
— Kris | Crypto.com (@kris) November 13, 2022
Because of FTX’s demise, the crypto community as a whole has been uber-sensitive now to any exchange even hinting that something could be considered sneaky.
Over the weekend, Crypto.com’s $CRO.X took quite a beating, closing nearly -23% on Saturday, falling even further on Sunday to lows not seen since April 2020, but it recovered the great majority of those losses and closed higher.
To show transparency and show Proof-Of-Reserves, the Crypto.com CEO worked with the blockchain analytics firm Nansen to show Crypto.com’s reserves:
Bitcoin ($BTC.X) accounts for close to 31% of Crypto.com’s reserves. The next largest reserve is Shiba Inu ($SHIB.X). According to a Crypto.com spokesperson talking with Coindesk, the reason that Crypto.com has so much Shiba Inu is that “The reason our Proof of Reserves includes Shiba is because we hold customers’ balances 1:1. Thus, our Proof of Reserves are dictated by our customer holdings.”
People have reported on Stocktwits and Twitter that there has been a noticeable increase in withdrawal times over the weekend. Not surprising when you consider Crypto.com’s Ethereum hot wallet averages 6,000 transactions a day, but on Sunday, it experienced 90,000.
If solvency and liquidity issues pop up with Crypto.com, we’ll be sure to update you ASAP. 🏛️