After an accidental transfer by Crypto.com, Gate.io has reportedly returned all the funds.
Crypto.com, a Singapore-based cryptocurrency exchange established in 2016, has reportedly transferred 320,000 ETH (worth around $403 million) to Gate.io's address.
According to the data, the transaction was made on October 21st, 2022, from Crypto.com’s cold wallet to Gate.io.
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On November 13th, Crypto.com CEO Kris Marszalek used Twitter to comment on the matter, claiming that the Ethereum (ETH) transfers “generated so much fear, uncertainty, and doubt (FUD) & speculations on Twitter.”
In its Twitter thread, Marszalek noted that funds from Crypto.com custody systems can be moved only “between approved and whitelisted addresses attached” to Crypto.com cold or hot wallets and “corporate accounts at 3rd party exchanges.”
In this particular case the whitelisted address belonged to one of our corporate accounts in a 3rd party exchange instead of our cold wallet. We have since strengthened our process and systems to better manage these internal transfers.
Gate.io shared a separate blog post uncovering the incident. The company claims that “large-amount entry” has triggered Gate.io security audit mechanism intercepting risk control system. The company emphasized that it immediately contacted Crypto.com. After identifying that transfer was an error, Gate.io returned funds to the crypto exchange.
When talking about the situation, Gate.io noted:
Safeguarding clients' assets is our number one goal. In digital asset trading, asset management has always been the most important thing for users. Whether the exchange can truly manage user assets fairly, transparently, and safely is the prior factor for all users to consider before conducting digital asset trading.
On-chain data revealed that Gate.io returned 285,000 ETH to Crypto.com, while the remaining 35,000 ETH were transferred to a different address. Although Marszalek claims that all funds were returned, the owners of the second address are yet to be known.
It is worth noting that it is not the first time Crypto.com made an accidental transfer. In May 2021, Crypto.com sent $10.5 million to its Australian user while attempting to refund the person $100.
