Crypto.com Token Cronos, Drop 50% After Sending $400M in Ethereum to The Wrong Address

Crypto.com Token Cronos, Drop 50% After Sending $400M in Ethereum to The Wrong Address.

CEO Kris Marszalek admitted that 320,000 ETH, around $400 million had been accidentally sent to an address registered on a competitor exchange by mistake.

As reported by CoinGecko, native token of Crypto.com, Cronos, dropped more than 50% yesterday.

The chronology

According to Etherscan, Crypto.com transferred the sum, roughly 80% of its total ETH reserves, to rival exchange Gate.io on October 21.

“The ETH transfers that generated so much FUD & speculation on Twitter today were made over three weeks ago, on October 21st to http://Crypto.com’s whitelisted corporate account at http://Gate.io,”  Kris said on Twitter. 

The ETH transfers that generated so much FUD & speculation on Twitter today were made over three weeks ago, on October 21st to https://t.co/pFc4Pz9nFR’s whitelisted corporate account at https://t.co/Mr9GCkL2gV.

— Kris | Crypto.com (@kris) November 13, 2022

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Originally it was meant to be a move to a new cold storage address, but was sent to a whitelisted external exchange address instead.

“We worked with Gate team and the funds were subsequently returned to our cold storage. New process and features were implemented to prevent this from reoccurring,” he added.

Additionally, Marszalek noted that all funds have since been returned, and Crypto.com’s Gate balance has reached single digit millions.

“http://Crypto.com proceeded to withdraw the funds back to its cold wallets over the following days. The entirety of ETH was successfully withdrawn by http://Crypto.com  and returned to our cold storage,” he said.

Not all users are convinced

For many retail investors, the fact that $400 million in Ethereum was accidentally transferred to the wrong address then returned does not provide comfort.

Despite Crypto.com’s claims that nothing is amiss, some users continue to complain about withdrawal delays on Twitter.

“It’s only FUD, they say. @kris reassures us that everything is operational.

And yet… you can’t withdraw your Bitcoin holdings! What’s going on?

Read More: Ethereum’s Vitalik Buterin Says The Collapse of FTX is Inevitable 

P.S. withdrawal request made 2 hours ago, still pending @KimDotcom @MarioNawfal @RealChetBLong @cz_binance #CryptoCom #Bitcoin pic.twitter.com/TOW8OlvuDt,” said one Twitter user. 

Wait, so why did you send them 320k eth and got 285k in return? What happened to the rest of the customer deposits??

— foobar (@0xfoobar) November 13, 2022

Another users were  questioning what happened with the rest of the deposits, “Wait, so why did you send them 320k eth and got 285k in return? What happened to the rest of the customer deposits??.”

But the tweet hasn’t received any replies yet neither the firm nor the CEO. 

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