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Amid the current crypto downtown, a financial service firm and crypto exchange, Crypto.com, announced that it has recovered the funds which it accidentally sent to another crypto exchange.
According to the financial service firm, it transferred around 320k ETH to Gate.io, a centralized crypto exchange, and then its CEO affirmed that they have received the funds from Gate.io.
Crypto.com is a platform that provides users the services to buy, sell, and pay using cryptocurrencies. It has its own cryptocurrency, Cronos, which is currently down 11.01% in the last 24 hours. However, Cronos is trading at $0.072 USD with a 24-hour trading volume of $55.79 Million. The exchange was founded in 2016 and now has 50 Million customers with four thousands of employees.
The Response From Crypto.com CEO
Crypto.com stated that it will keep its eye on its new processes and features to prevent this kind of mistakes. While exploring the information of the recent transfer, Etherscan, a Analytics Platform, shows that Crypto.com has transferred 320k ETH to a wallet that is linked with the other exchange, Gate.io. This transaction was produced on October 21, 2022 and got confirmed within 14 secs.
Kris, the CEO of Crypto.com, replied to a tweet of the community member, jcornergorgan, who raised the question in his tweet as “why Gate.io would send back to Crypto.com 285k ETH five to seven days later?”
Over this question, the CEO replied that “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.”
Mr. Kris later tweeted as “All funds were returned and only own single digit USD Million balance on Gate as of now.”
Proof-of-Reserve: The Crypto Exchange Saviour
Proof-of-Reserves (PoR) which are independent audits by third parties and give transparency and proof as the custodian holds the assets it claims to own on behalf of its clients. The recent crypto exchange fall improves the importance of PoR which somewhere supports leading crypto exchanges to list its cold and hot wallet addresses.
On the other hand, from the October 26, 2022 announcement, the new partnership between the two global crypto exchanges, Crypto.com and Gate.io has been seen. The exchanges came together to establish its regional offices in Busan, the second largest city of South Korea. And Both exchanges will also provide technology and infrastructure support to Busan city with more blockchain adoption in the city.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
