Back-to-back scandals have broken out in the cryptocurrency market, with the two newest names getting Crypto.com – Gate.io trading duo.
After FTX ran out of consumer money and ended up filing for bankruptcy, Binance CEO Changpeng Zhao asked exchanges to jointly publish evidence of consumer assets to improve self-confidence in the college market.
According to information published on November 10, Binance has around $70 billion worth of BTC, ETH, USDT, BUSD, USDC, and BNB coins. This amount does not include other altcoins, which are expected to be announced soon.
However, on the morning of November 13, the local crypto community discovered a shocking reality about Crypto.com and Gate.io. Specifically, shortly after these two platforms announced the ETH addresses, one person found large transfers of ETH between the two exchanges.
Transfers Unveiled
On Oct. 21, the recently announced ETH wallet token Crypto.com sent 320,000 ETH ($405 million) to the Gate.io wallet token. Over the next five to seven days, Gate.io steadily transferred 285,000 ETH to Crypto.com.
When asked about the additional information, Crypto.com CEO Kris Marszalek explained that, “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.”
The CEO’s response generated numerous inquiries. The reason is that a major exchange like Crypto.com absolutely requires taking steps to carefully protect assets, particularly when it comes to substantial sums of income. This is not the first time it has happened when, in August 2022, Crypto.com mistakenly transferred $10.5 million instead of $100 to a consumer and then sued them.
Gate.io was later discovered by a person to have taken an asset stability snapshot and released the report on Oct. 28, shortly after taking the revenue from Crypto.com. Therefore, the concept that is now circulating is that Gate.io is struggling with liquidity, and has received income from Crypto.com to inflate its books.
Further Reactions
There have been requests for withdrawals from both Crypto.com and Gate.io.
However, according to Blockchain data, the Crypto.com transaction that transferred ETH to Gate.io was located at Ethereum block 15793614, while the exchange claimed the acquisition of Gate.io stability. to get the location. in Ethereum block amount 15778435. However, there is a possibility that it is all a coincidence, that Crypto.com made a mistake and Gate.io is fine, unless of course Gate.io intentionally fakes the block of stability capture to conceal the evidence.
According to WuBlockchain, Huobi’s exchange also witnessed the withdrawal of 10,000 ETH from Binance and OKX shortly after announcing the client revenue withholding check, raising suspicions that Huobi was also cash-strapped and had to borrow. income to “makeup” the paperwork.
However, there is still considerable evidence to support the excessive arguments, Coinlive does not promise the accuracy of the information presented by the sources, except for the apparently very similar transactions as a result of the Blockchain.
By Audy Castaneda
