accidentally transfers 320k ETH to, likely to be insolvent

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Key Takeaways

  • As per on-chain data, on October 28, returned 285,000 ETH back to
  •’s CEO Kris states the funds were sent accidentally to

Leading crypto exchange’s cold store information revealed a suspicious transfer of 320,000 ETH to a wallet address linked to on October 21, 2022. The shocking revelation comes days after published its “audited proof of reserves” amid the downfall of Sam Bankman-Fried’s FTX. 

The news was first brought to light by Twitter user @jconorgrogan, who raised concerns about the transfer of 320,000 ETH from’s cold wallet to This was concerning since has repeatedly stated that 100% of user-owned crypto is held offline in cold storage in collaboration with hardware wallet provider Ledger.

Soon after the tweet started gaining traction,’s CEO Kris replied to the tweet with his reasoning. He said the funds were sent accidentally to” 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 the Gate team, and the funds were subsequently returned to our cold storage. New process and features were implemented to prevent this from reoccurring”, his tweet reads.

As per on-chain data, on October 28, returned 285,000 ETH back to The remaining 35,000 ETH was sent to a different address, contrary to Marszalek’s statement that all funds were returned. Many in the crypto community believe the transfer could trigger a liquidity scare for

This is not the first time has come under public scrutiny owing to its accidental transfers. Earlier this year, the exchange mistakenly transferred $10.5 million to an Australian woman in May 2021 instead of a refund of just $100. Concerningly, the mistake was only noticed seven months later after carrying out an audit.

Like, several other crypto firms like Binance have now decided to publish their Proof of Reserves against the backdrop of the FTX liquidity crisis to quench people’s apprehensions and instill investor confidence.

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Saniya Raahath
Saniya Raahath

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