Accidentally Sent $400M in Ethereum to Wrong Address, CEO Calls Concerns ‘FUD’ – After the shocking collapse of FTX, other centralized crypto exchanges are under the microscope—and customers are concerned after CEO Kris Marszalek acknowledged that his exchange accidentally sent 320,000 ETH, around $400 million at the time, to a public address registered at a competitor exchange.

Blockchain records on Etherscan show that on October 21, sent the sum, around 80% of its total ETH reserves, to rival exchange on October 22—just before provided “proof of reserves” to its users on October 28 as part of a new push for transparency after the FTX crisis. subsequently returned the slightly diminished sum of 285,000 ETH, around $456 million as a result of a minor ETH surge, on October 29. That was just in time for to release its own proof of reserves on November 12.

“It was supposed to be a move to a new cold storage address, but was sent to a whitelisted external exchange address,” Marszalek tweeted on Saturday. “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.”

Marszalek further insisted that the address was’s own corporate account at Gate. He added that all of the funds had since been returned and that’s dollar balance on Gate is in the “single-digit” millions. Trading Volume Sinks 91% One Year After ‘Brave’ Matt Damon Ad

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In a thread blasting the resulting speculation as “FUD,” Marszalek also shared a snapshot from Gate showing its reserves from October 19 without the funds. Gate also posted on its blog late on Saturday night a “clarification” about its “assistance to to retrieve 320k ETH mistaken transfer.” and did not immediately respond to requests from Decrypt for further comment.

The baffling transaction comes days after one of the top five exchanges in the world suffered a catastrophic bank run and didn’t have the liquidity to cover, leading to the complete unraveling of Sam Bankman-Fried’s empire and reputation.

Like FTX, markets itself as a regulated, trustworthy crypto business—claims that many now doubt.

Binance CEO Changpeng Zhao, who triggered the FTX selloff one week ago when he tweeted that his company would liquidate its stash of FTX’s token, pounced on the fiasco.

“If an exchange have to move large amounts of crypto before or after they demonstrate their wallet addresses, it is a clear sign of problems. Stay away.”