Monday, February 26, 2024

Crypto.com: Nervous After 400 Million Transfer To Wrong Wallet

Date:

Pressure on the Singapore-based company appears to be mounting after it was revealed that cryptocurrency exchange Crypto.com accidentally sent $400 million worth of crypto to the wrong wallet three weeks ago. This is reported by the Wall Street Journal and refers to blockchain analyzes according to which investors have recently withdrawn an unusually large amount of crypto money from the platform. However, so far it appears that Crypto.com could handle the fallout financially. According to the Reuters news agency, this was also confirmed by managing director Kris Marszalek on Monday.

Marszalek admitted to the erroneous transfer over the weekend after public blockchain analysis was revealed writes the Wall Street Journal. According to them, Crypto.com sent 320,000 Ether (ETH) to the wallet owned by cryptocurrency exchange Gate.io on Oct. 21. In reality, they wanted to transfer the crypto money to their own “cold storage”. They are not connected to the Internet and must be particularly well protected against theft. Marszalek explained over the weekend that they cooperated with Gate.io and recovered the huge sum.

insured on monday him according to Reutersthat he will go about his own business unmolested and “prove all doubters” wrong. They have enough reserves and they will prove it with an audit this week. This will also show that it has nothing to do with “irresponsible credit products”. According to the report, with the public question-and-answer session on Monday, Marszalek responded to the growing criticism that became loud after the transfer error was known.

The events take place against the background of the FTX crypto exchange, which imploded within a few days. A week ago, it had payment difficulties after doubts about capital reserves led to a flight of clients and withdrawals of funds worth billions. On Wednesday it initially looked like competitor Binance would take over most of the ailing pool, but Binance summarily canceled the acquisition of the struggling rival. FTX filed for bankruptcy protection in the US on Friday, and Bahamian police are now investigating where FTX is based. The events have clearly caused nervousness in the crypto markets, with crypto exchanges such as Crypto.com pledging to disclose their holdings.


(mho)

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Ebenezer Robbins
Ebenezer Robbins
Introvert. Beer guru. Communicator. Travel fanatic. Web advocate. Certified alcohol geek. Tv buff. Subtly charming internet aficionado.

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