Crypto.com Accidentally Sent $400 Million of Ethereum to the Wrong Address

Soon after the incident, crypto.com’s token dipped by almost 50%, concerns amongst the crypto exchange users also increased

One of crypto’s most renowned exchange, ‘crypto.com’ just admitted to a grave mistake of sending over 320,000 in Ethereum ($416 million USD) to the wrong address. Addressing the situation, ‘crypto.com’ CEO ‘Kris Marszalek’ said that the ethereum was actually supposed to be sent into one of the company’s cold or offline wallet, however they accidentally sent to a different address and transferred the amount to another crypto exchange named Gate.io.

This incident happened almost three weeks from now, however the mistake was kept a secret. It wasn’t until one customer probed into the exchange’s transfer history and found the 320,000 ethereum transaction. Now this find was obviously huge since this is about 80% of crypto.com’s ethereum holdings.

Anyone know why https://t.co/2vZHyCaKNe would send 320k ETH (82% of their ETH today) to https://t.co/bVgf3bCqwp on October 21? pic.twitter.com/2E1NxX1pJz

— Conor (@jconorgrogan) November 12, 2022

Upon discovering the transaction, the user named Conor Grogan tweeted about the transaction and the tweet soon gained traction. Crypto.com was quick to respond to the chaos and reported that while the transaction is true and was performed accidentally, they soon got it back and have now stored the ethereum in their cold wallets.

After a detailed investigation users on Twitter confirmed that crypto.com actually received all of its ethereum back from Gate.io just about a week from the transactions. Two return transactions were made from Gate.io’s side, transferring about 285,000 Ethereum into one wallet and the other 35,000 Ethereum into a second wallet.

Announcing the return of the funds, CEO Kris Marszalek said that the frameworks have now been improved and the exchange is expected not to make such a mistake in the future.

Crypto.com users were glad because of the fact that the exchange actually got its money back this time, unlike another similar past event. Back in August, crypto.com accidentally sent over $7 million to a woman but never got it back and is currently suing her for their money.

Musk Hints Towards a Twitter Bankruptcy as More and More Executives Quit