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Crypto exchange Crypto.com mistakenly sent 320,000 ETH to a wallet address linked to Gate.io in late October
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While the platform has since recovered the assets, Binance CEO Changpeng Zhao advised users that it is best to stay away from the platform.
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Many in the cryptocurrency sector are now questioning the reliability of centralised players in light of the historic collapse of FTX, the previou.
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sly third-largest cryptocurrency exchange and self-proclaimed "lord of bail-outs" during the current crypto catastrophe.
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Crypto authorities started sharing proof of stores to soothe this concern. For starters, Crypto.com made its crypto addresses public, disclosing how much and whose coins it maintains on its users' behalf.
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However, users were quick to spot a suspicious transfer of 320,000 ETH on October 21, 2022, to a wallet address associated with Gate.io.
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Largely because the exchange claims that all user-owned cryptocurrencies are kept offline in cold storage, in partnership with hardware wallet provider Ledger.
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Crypto.com CEO Chris Marszalek revealed that the transaction was a mistake.
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It was transferred to a whitelisted external exchange address instead of the intended new cold storage location, he claimed, adding:
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Despite the clarification, the crypto community has been left with a sour taste for the platform.
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