11-13-2022, 12:10 PM
Crypto com's CEO says all funds were returned from Gate.io. But onchain clearly show
<!-- SC_OFF --><div class="md"><p><strong>Edit:</strong> Some comments have pointed out that the 35k ETH was returned to a different CDC wallet. Now it's just whether CDC and Gate.io colluded on some sort of audit proof of reserves or CDC is actually so incompetent that it sent $500 million worth of user tokens to the wrong address. Either way, this looks extremely bad.</p> <p>Source: <a href="https://twitter.com/jconorgrogan/status/1591516592835559429">https://twitter.com/jconorgrogan/status/1591516592835559429</a></p> <blockquote> <p>Anyone know why Crypto.com would send 320k ETH (82% of their ETH today) to Gate.io on October 21? </p> <p>And why Gate.io would send back to Crypto.com 285K ETH 5-7 days later?</p> </blockquote> <p>CDC CEO replied:</p> <blockquote> <p>All funds were returned. We have single digit USD million balance on Gate as of now. </p> <p>It was supposed to be a move to a new cold storage address, but was sent to a whitelisted external exchange address. 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.</p> </blockquote> <p>The problem is, we clearly see that 35k ETH were not returned. I mean, what the hell? Why would they send customer's ETH deposits to another exchange, still claim 1:1 backing, and not all ETH were sent back?</p> <p>Also, how could you trust an organization that accidentally sent 320k (~$500 million) of your ETH to the wrong address? Got 285k back. And still claims 1:1 backing?</p> <p>It baffles my mind how you can accidentally send $500m to someone else. Perhaps it wasn't an accident?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/senttoschool"> /u/senttoschool </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/yts9v9/crypto_coms_ceo_says_all_funds_were_returned_from/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/yts9v9/crypto_coms_ceo_says_all_funds_were_returned_from/">[comments]</a></span>
<!-- SC_OFF --><div class="md"><p><strong>Edit:</strong> Some comments have pointed out that the 35k ETH was returned to a different CDC wallet. Now it's just whether CDC and Gate.io colluded on some sort of audit proof of reserves or CDC is actually so incompetent that it sent $500 million worth of user tokens to the wrong address. Either way, this looks extremely bad.</p> <p>Source: <a href="https://twitter.com/jconorgrogan/status/1591516592835559429">https://twitter.com/jconorgrogan/status/1591516592835559429</a></p> <blockquote> <p>Anyone know why Crypto.com would send 320k ETH (82% of their ETH today) to Gate.io on October 21? </p> <p>And why Gate.io would send back to Crypto.com 285K ETH 5-7 days later?</p> </blockquote> <p>CDC CEO replied:</p> <blockquote> <p>All funds were returned. We have single digit USD million balance on Gate as of now. </p> <p>It was supposed to be a move to a new cold storage address, but was sent to a whitelisted external exchange address. 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.</p> </blockquote> <p>The problem is, we clearly see that 35k ETH were not returned. I mean, what the hell? Why would they send customer's ETH deposits to another exchange, still claim 1:1 backing, and not all ETH were sent back?</p> <p>Also, how could you trust an organization that accidentally sent 320k (~$500 million) of your ETH to the wrong address? Got 285k back. And still claims 1:1 backing?</p> <p>It baffles my mind how you can accidentally send $500m to someone else. Perhaps it wasn't an accident?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/senttoschool"> /u/senttoschool </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/yts9v9/crypto_coms_ceo_says_all_funds_were_returned_from/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/yts9v9/crypto_coms_ceo_says_all_funds_were_returned_from/">[comments]</a></span>