Crypto.com sends $400 million to fake wallet

Increasing cyberattacks regularly cause great nervousness among customers of crypto exchanges. On the Crypto.com platform, however, it was not a hacker attack that brought beads of sweat to users’ foreheads. Instead, the company mistakenly transferred $400 million to the wrong wallet.

Incertainty among clientele

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Singapore-based Crypto.com has made a real faux pas, which is likely to have gone down anything but well with its clientele. Thus, about three weeks ago, the platform is said to have accidentally sent the equivalent of nearly $400 million in cryptocurrency to the wrong wallet. This mistake could now possibly be the company’s undoing. According to a report in the Wall Street Journal, many users have recently decided to withdraw their money from the platform. However, the platform itself assures Reuters that it will be able to cope financially with the departure of some users. Any other statement, however, would also be disastrous, as the last customers would then probably look for an alternative.

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Bad timing for a mistake

The faulty transfer of cryptocurrency could probably be seen publicly within the blockchain. Only after everyone got to see the proof of the error, the platform also admitted the same, although it already happened on October 21, 2022. This is unlikely to inspire much confidence among customers. The timing for such a blatant error could hardly be worse. After all, crypto platforms are currently being heavily criticized for their insecurity anyway.

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The failure of the crypto exchange FTX is almost symptomatic of this. After this got problems to be able to bear their running costs, many customers migrated. Ultimately, FTX did not survive the stumble and fell. So if Crypto.com now reveals that it is struggling financially due to the departure of many customers, the company could face a very similar fate. Is this a sign that the hype around crypto exchanges has come to an end?