Bad $405 Million Transaction on Crypto.com Triggers Investors After FTX Failure

Crypto exchange Crypto.com is being confirmed under a microscope after sending $405 million to the wrong payee. An alarm has sounded among cryptocurrency observers after this week’s whirlwind of competing exchange FTX, which filed for bankruptcy on Friday. Some crypto observers closely scrutinizing the trades speculated that this was an attempt to inflate trading volume. Complicating the bullshit, it turns out that the analyst who first caught the trade was an employee of competing exchange Coinbase. It also follows the mistake that Crypto.com mistakenly sent in December to a woman in Australia $10.5 million instead of $100 refund. said that the funds were going to be sent to an offline cold storage cryptocurrency wallet, but went to another cryptocurrency exchange, Gate.io by mistake. Some cryptocurrency exchanges have accounts with competitors to enhance liquidity during periods of volatility. “Movement of funds in the Crypto.com custody system includes cold wallets, hot wallets (connected to the internet) and corporate accounts on third-party exchanges” said the spokesperson. The Crypto.com logo and cryptocurrency representation displayed on the phone screen can be seen in this article. Illustrated photo taken in Krakow, Poland on September 28, 2021 in USD) fell 24%. During the same period, Bitcoin (BTC-USD) fell less than 2.5% and Ether (ETH-USD) fell 2.5%, following a bid from several cryptocurrency exchanges this week. They signaled the collapse of FTX by hastily announcing “proof of reserves” showing that investor funds were not being used. However, depending on the frequency and volume of the balance sheet the company chooses to display, this action may still be insufficient. Continuing the story According to Sergey Nazarov, CEO and co-founder of Chainlink, in the best-case scenario, proof of reserve can prove solvency. Nazarov told Yahoo Finance about the Chainlink product. He said total customer assets were $3 billion. As of Saturday, the figure was down 15% to $2.55 billion, according to wallets from Crypto.com tracked by blockchain analytics platform Nansen. During the same period, OKX is the third largest cryptocurrency exchange in terms of trading volume after Binance and Coinbase. — Assets increased by $114 million. According to Nansen, it has $5.83 billion in assets, of which 64% is Ether (ETH-USD) and 25.8% is Bitcoin (BTC-USD). increased by $4 billion. $1 billion, according to the Binance wallet tracked by Nansen. “Proof of reserves is good as long as there is evidence of assets and liabilities.” Michael Anderson, co-founder of the Crypto Venture Capital Company Framework, told Yahoo Finance. “It gives you part of the story. It helps people know if companies are using customer assets as collateral to borrow money. – David Hollerith is a senior reporter at Yahoo Finance, covering cryptocurrencies and the stock market. Follow him on Twitter @DsHollers Click here for the latest crypto news, updates, values, prices and more related to Bitcoin, Ethereum, Dogecoin, DeFi and NFT Facebook, Instagram, Flipboard, LinkedIn in, youtube
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