Tokens Accidentally Sent $400M to Rival Address

$400M Accidentally Sent by to Competitor

Nov 16, 2022
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The sum of 320k ETH has been mistakenly transferred by to a address and retrieved days after.

Cryptocurrency trading platform accidentally sent 320,000 ETH – worth of around $400 million representing 82% of’s ETH holding in the cold storage – to its rival after mixing up its own corporate account wallets with a new cold storage address.

The mistake came last month on October 21, but CEO Kris Marszalek acknowledged the error just after the shocking collapse of FTX, leaving customers concerned over the exchange’s transparency. As a consequence,’s Cronos (CRO) token fell 30%.

On October 29, subsequently returned to a slightly diminished sum of 285,000 ETH, around $456 million (as a result of a minor ETH surge).  Further investigation showed that the missing 35,000 ETH was sent to a different address, which is yet to be confirmed by the crypto exchange. proceeded to withdraw the funds back to its cold wallets over the following days. The entirety of ETH was successfully withdrawn by and returned to our cold storage,” Marszalek revealed on Twitter. “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”.

 “ sent 320,000 ETH to the account it was using. This large-amount entry triggered the security audit mechanism of the platform, which was intercepted by the risk control system. After communicating with and confirming that it was an operation error transfer, we immediately started the asset return process and assisted in returning all the wrongly transferred assets,” confirmed on its platform.  

This is not the first time in recent history that send out an erroneous transaction. In August, the trading platform accidentally transferred $10.5 million AUD (about $7.2 million USD) to a Melbourne woman attempting to get a refund of just $100.

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