Everyone Is Running To That Bitcoin Exchange Called ‘Withdraw Your Money’!

As is known, Bitcoin (BTC) and altcoin exchange Crypto.com sent more than 320,000 Ethereum worth approximately $400 million to rival cryptocurrency exchange Gate.io on Oct. 21. Users who thought this was suspicious made an effort to withdraw their funds from the platform. Here are the details…

Big withdrawals are taking place on Bitcoin exchange Crypto.com

This information was made public after a Twitter user shared a screenshot a few weeks ago asking why precious ETH mysteriously left Crypto.com. Crypto.com CEO Kris Marszalek responded to the tweet, arguing that an employee’s mistake led to the transfer. Koindeks.comAs we reported, according to Marszalek, someone in his team unintentionally sent 80 percent of their ETH reserves to a “whitelisted exchange”.

He said the money had to be transferred to a new cold wallet. “The funds were supposed to be moved to a new cold storage address, but were sent to a whitelisted external exchange address,” Marszalek said. “We worked with the Gate team and the funds were then returned to our cold storage.” Marszalek added that all ETH was sent back.

The error comes at a time when users are closely analyzing how exchanges are managing their cash, and trust in centralized exchanges has waned in the wake of FTX’s collapse. Also, this is not the first mistake Crypto.com has made in transferring money. Last year, more than $7.1 million was inadvertently transferred to a customer by an employee. Later, the company sued the buyer to get the money back.

The announcement of the exchange worried users

Crypto.com’s relevance has been questioned by many in the cryptocurrency industry, who think the transfers may have something to do with proof of reserve. In this midst, Adam Cochran of Synthetix and Yearn Finance emphasized that the CEO needs to fill some of the gaps in Crypto.com’s proof of existence. Cochran added that the “wait for our inspection” response was insufficient. Cochran used the following words:

If there are assets, it should be fairly easy to show 80 percent of those assets to secure users in this middle. You understand that in this environment, people have reason to worry and ask questions.

Prominent crypto phenom Ben Armstrong (BitBoy) announced that he was withdrawing all his holdings from Crypto.com and encouraged others to do the same thing. He claimed that recent events taught him the value of keeping his coins in his own wallet. Binance CEO Changpeng Zhao also commented on the event, stating that it is a “clear sign of problems” for an exchange to move valuable cryptocurrency before or after proof of reserve. Crypto.com CEO, on the other hand, condemned the rumors about the stock market. He suggested that users pay more attention to companies that have ties to FTX.

Transfers in the stock market intensified

Meanwhile, the exchange is currently facing mass withdrawals. This Sunday, 90,000 Ethereum transactions were processed in the exchange’s hot wallet. Normally, this measure was around 6,000 processes.

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