Crypto.com in Trouble: $400 Million Worth of Coins Transferred Incorrectly

The FTX bankruptcy is putting pressure on other crypto exchanges to work on their transparency. FTX lent customer funds and, to all appearances, holds only a fraction of the cryptocurrencies that users had stashed on the trading platform. While at FTX it was mainly the sell-off of the FTT token that had started the problems, it now looks similar at Crypto.com regarding the CRO token. An erroneous transaction in the millions is putting Crypto.com under increasing pressure.

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The current situation is forcing numerous crypto exchanges to be much more transparent

Little by little, crypto exchanges are coming forward on official channels, revealing how many coins of certain cryptocurrencies they each hold. However, these are mainly the companies’ own statements. The truthfulness often cannot be independently verified.

Accordingly, on October 21st, Crypto.com transferred 320,000 Ether Coins worth about $400 million to the crypto exchange Gate.io. Such large transactions to another crypto exchange are rather unusual. Crypto.com CEO Kris Marszalek has since spoken out, explaining that this was merely an error that was corrected immediately. The Ether coins were sent to a whitelisted address, although they wanted to transfer them to a new cold storage wallet. Since the transfers can be viewed on the blockchain, the statements, in this case, can also be confirmed.

Nevertheless, this transaction is causing a stir. That is because some investors fear that crypto exchanges could send cryptocurrencies to each other in this way in order to be able to prove on the due date of an audit that the coins are 100 percent covered as stated. Binance CEO Changpeng Zhao also advises users to be skeptical when crypto exchanges make such transactions.

CRO token price continues to plummet

Almost every cryptocurrency has suffered huge price losses in recent days. Thus, the negative performance of the CRO token was no exception or surprise. But while established coins have stagnated since then, the CRO token continues to go downhill. The cryptocurrency, which was launched under the name Crypto.com Coin, once again lost a quarter of its value in the last 24 hours, leaving it trading at around $0.06. With a market capitalization of around $1.5 billion, Cronos is nevertheless ranked as the 30th most valuable cryptocurrency. Cronos is currently around 94 percent away from its all-time high ($0.97).

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First published in t3n, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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