CryptoCom mistakenly sends $400 million worth of ETH to the gate, and the funds were later refunded

The FTX crash shook the cryptocurrency market in a way that not many expected, but there are some silver linings, no matter how small they may seem.

For once, most of the leading exchanges decided to go ahead with the proof of their reserves and published the majority of their addresses containing the funds stored on their platforms.

  • CryptoCom is one of the exchanges that has published its addresses, which show how much cryptocurrency it stores on behalf of its clients and which ones.
  • However, after the information quickly became public, members of the crypto community discovered a massive 320,000 ETH transaction sent from one of the exchange’s addresses.
  • This represents approximately 80% of the ETH stored on CryptoCom.
  • The company’s CEO, Chris Marsalek, provided an explanation of what happened:

It was supposed to be a move to a new cold storage address, but it was sent to a whitelisted external exchange address. We worked with the portal team and the money was then returned to our cold store. A new process and features have been implemented to prevent this from happening again.

  • Despite the explanation, the community was left with a stinging taste of how $400 million in ETH was accidentally sent to an address that was not the intended recipient.
  • This is not the first time CryptoCom has made such a mistake.
  • Last year, the exchange mistakenly sent a woman $10 million instead of $100. The most disturbing thing is that he did not detect the error for the whole 7 months.

After CryptoCom accidentally sent $400 million in ETH to Gateway, the refunds subsequently made their debut on CryptoPotato.

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