400 million were “accidentally” sent by Crypto.com to the incorrect address

Only if you don’t have access to the aforementioned options should you purchase it through an exchange. The fiat system is configured as a massive surveillance apparatus. This means that if you enter the crypto space using fiat, full surveillance will follow you throughout. Your privacy is thus jeopardized.

When exchanges ask for identification documents as part of KYC procedures, surveillance like this starts. The government would therefore be aware that you have previously made such purchases.

This minor mishap, or whatever you want to call it, occurred on October 21. 400 million dollars, or 320,000 $ETH, were unintentionally transmitted to the incorrect address by Crypto.com. But everything is well because the money was repaid in November, just a few days later.

The CEO of Crypto.com acknowledged that the cryptocurrency was intended to be transported to their brand-new cold storage. nonetheless, was inadvertently delivered to the exchange Gate.io. In fact, this was Crypto.com’s second occurrence of this kind of incident. Like most things in the world of cryptocurrency, the second time was far bigger than the first. The first time, they sent a woman who was entitled a $100 return $10.5 million AUD by mistake.

What Happened to Crypto Exchanges?

However, we suppose you were sort of anticipating a bug at this point. And I’d contend that there is a bug—one of elephant size, specifically. The monies were transmitted to Gate.io, a competing cryptocurrency exchange. According to the transaction’s schedule. the money was given back shortly.

But that schedule still needs to include something else. The Proof of Reserve report for Bitcoin and Ethereum on Gate.io needed to be added. On October 28, this report was generated. Prior to the money being returned from Gate.io to Crypto.com, one day had passed.

This appears to be extremely evocative of how firms were launched in the 1980s. Borrowing funds, using them as capital, and then returning them. It appears that exchange students from other countries experience a similar situation. To demonstrate that they have the resources necessary to live in Sweden, they borrow money. But ultimately find themselves having to work low-paying jobs in order to survive. Utilized by dishonest employers, yeah, we have them here in Sweden as well.

Shared funds between cryptocurrency exchanges?

Our main concern right now is whether or not crypto exchanges are banding together following the FTX meltdown. Ensuring they don’t lose any more money for the remainder of the bear market? All of the exchanges have essentially rushed to demonstrate their Proof of Reserve in the wake of the FTX disaster. Recognizing it as a means of demonstrating to their clients that their cryptocurrency is safe with them. This implies that the exchange would essentially end if they were unable to do so.

Our second concern is how inept Crypto.com actually is. If they did make a mistake, it was this. They have experienced it twice already. They sent 82% of their $ETH this time. This transaction also shows that the safety measures they implemented after the first one were woefully inadequate. And it either demonstrates their lack of proficiency or their great carelessness while handling other people’s crypto. Because, if need be, there is no question in my mind as to who would have been footing the $400,000,000 tab for that error.

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