While the discussions on transparency among crypto money exchanges continued, the transfer between Gate.io and Crypto.com was at the center of criticism.
Parallel to FTX’s bankruptcy Binance emphasized the importance of reserve transparency and took action to transparently present all exchange-owned assets. Following this move, many popular exchanges decided to share their reserves. The transparent sharing of reserves has brought some facts to the surface.
According to on-chain records Crypto.com worth nearly $400 million from their wallets 320k EthereumIt has been noticed that the . is sent to the crypto money exchange Gate.io. This transfer, which took place on October 21, 2022, shocked the investors. Following the spread of the allegations, the information received by Crypto.com explanation process “by mistake” was that it happened:
These 320k ETH were supposed to be moved to a new cold storage address but were sent to the address of a whitelisted external exchange. We worked with the Gate team and the funds were then returned to our cold wallet. To prevent this from happening again, new processes and features have been implemented.
CEO Kris Marszalek This statement was not enough and after the news spread, the highest money outflow of recent times was observed from the Crypto.com exchange. The data shows that mass shootings are still going on.
CEO Marszalek weekend on the events YouTube over a BUT organized the program and answered the curious questions. The CEO especially underlined that they did not work with the same logic as FTX throughout the program and that the funds were safe. He stated that they would shortly provide a “proof of reserve” and have it done by an independent audit firm:
We still work the way our platform works under normal conditions. Of course, there is an increase in activity, but both deposits and withdrawals continue without any problems. We are regulated by many institutions from England to France to the USA. We are one of the first exchanges to be licensed in Singapore. This is very important for building trust.