The crypto industry has come together to share proof of reserve with the public to demonstrate legitimacy in the wake of growing suspicion among crypto investors after the FTX crash.
- Investigators discovered that 320,000 Ether was transferred to Gate.io on October 21, 2022, two days after Crypto.com released the details of their cold storage information to the public.
- Kris Marszalek, CEO of Crypto.com, denied any wrongdoing, saying the money was moved inadvertently and finally restored to the original storage. Gate.io published its proof of reserves snapshot on October 28, which raised suspicion.
- In addition, the crypto community suspects Huobi of doing something similar. Shortly after Huobi put out its asset snapshot, a wallet address connected to the exchange was seen transferring 10,000 ETH to Binance and OKX deposit wallets. Colin Wu, a blockchain investigator, cited the transactions on Etherscan as evidence that Huobi had shown 14,858 ETH in its most recent snapshot with many believing that these assets were loaned for the snapshot and returned later.
- Huobi has not responded to the allegations the cryptocurrency community made.
- However, Gate.io founder Lin Han shared their version of events. Han said that the disputed image was captured on October 19, two days before the unintentional transfer of 320,000 ETH by Crypto.com. Han also provided proof to reassure the community that Crypto.com’s cash arrived after the snapshot was released.
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