CZ Binance Issues Another Warning Directed At Exchanges Crypto.Com And Gate.Io

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CZ Binance Issues Another Warning Directed At Exchanges Crypto.Com And Gate.Io

Binance’s CEO CZ issues a warning directed at Crypto Exchanges Crypto.Com and Gate.IO, “Stay Away, Stay SAFU” he says. The warning comes after the recent SBF FTX and Alameda collapse, which has shaken the crypto industry.Crypto.com’s CEO confirms that the exchange of funds, approx $400M was an accident that was later rectified. The price of Crypto.com’s $CRO token has dropped 17.9% in the last 24 hours.

Binance’s CEO CZ has not held back on Twitter and issued another warning hinting that exchanges that move large amounts of crypto before or after they demonstrate their wallet addresses are showing clear signs of problems. “Stay away. Stay #SAFU” CZ continues to say.

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. Stay #SAFU. 🙏— CZ 🔶 Binance (@cz_binance) November 13, 2022

This warning comes after the recent Sam Bankman Fried FTX collapse, where the exchange sank into an over $10B liquidity crunch and filed for bankruptcy. The news shook the crypto markets, and all eyes are focused on other exchanges that may be susceptible to the same fate.

Upon confirmation from Crypto.Com’s CEO, Kris Marszalek, it appears that Crypto.Com accidentally sent more than 320,000 approx $400M to rival crypto exchange Gate.Io. This event was initially revealed by a Twitter user who posted a screenshot of Crypto.com sending funds to Gate just before their released their “Proof of Reserve” statement. Kris Marzalek added that the funds have now been all recovered.

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 Gate team and the funds were subsequently returned to our cold storage. New process and features were implemented to prevent this from reoccurring.— Kris | Crypto.com (@kris) November 13, 2022

Trust at centralized exchanges is currently at an all-time low, and users are increasingly withdrawing funds from exchanges to cold wallets or their bank accounts, according to data from Nansen.

The price of Crypto.com’s token has dropped %17.9 in the last 24 hours since the news was made public. According to Gate.Io the snapshot for Proof Of Reserve audit was taken on October 19, and did not include the Ethereum deposit received from Crypto.com.

Clarifications on @cryptocom’s transfer for the sake of transparency & education:1) Snapshot for PoR audit taken on Oct 19. https://t.co/a4NJTN8Brj’s deposit was not included https://t.co/5U5tZWFfBF2) All 320K ETH were returned https://t.co/7G5l3YLLIhhttps://t.co/IvyiBu9aBY— Gate.io (@gate_io) November 13, 2022

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