’s Transfer of 320K ETH to Causes FUD

FUD was caused when a community member questioned, sending 320k ETH (82% of their ETH today) to while returned 285k ETH in a week.'s Transfer of 320K ETH to Causes FUD

The fall of FTX has left the community distrustful and on high alert. On October 19, experienced an operation error transfer, resulting in the erroneous transfer of 320,000 ETH to the account it was using. This has caused FUD about the exchanges’ proof of reserves.

Kris Marszalek, the CEO of, confirmed the “mistaken” transfer, while clarified it. successfully withdrew the entire amount of ETH, with the help of, in returning all incorrectly transferred assets.

“Fund movements from custody systems are only possible between approved and whitelisted addresses attached to our cold wallets, hot wallets, and corporate accounts at 3rd party exchanges,” Marszalek explained.

The whitelisted address during the transfer belonged to one of our corporate accounts in a third-party exchange rather than their cold wallet.

Later,, with the help of the US auditing firm Armanino, released the exchange’s asset reserve certificate and asset audit snapshot. also took the proactive step of providing a preliminary set of disclosures, sharing wallet addresses with blockchain analysis firm Nansen to create a dashboard of nearly $3 billion in reserves and other assets.

However, the seeds of FUD were sown when community member @jconorgrogan questioned, “why would send 320k ETH (82% of their ETH today) to on October 21?” While returned 285k ETH in a week. Further investigation revealed that the missing 35,000 ETH was sent to a different address, which the crypto exchange has yet to confirm. returen fund to

Mario Nawfal, CEO of the International Blockchain Consulting firm, tweeted a response by @PiGamification, an employee who raised ethical concerns about how the company was run and was fired.

Also Read: Binance Shares Details of Wallet Addresses for Transparency

Binance CEO Changpeng Zhao chimed in, saying that an exchange that moves large amounts of crypto before or after its proof-of-reserve is a “clear sign of problems.”

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