Crypto.com Accidentally Sent $400 Million to a Competitor

Following the collapse of FTX, the peers at the exchange are feeling the pressure.

Kris Marszalek, the CEO of Crypto.com, had to tell the world over the weekend that his company accidentally sent $400 million worth of ether to a Gate.io address.

Marszalek said that it was supposed to be a move to a new cold storage address. After working with the Gate team, the funds were returned to the cold storage.

It's an embarrassing confession that's sent a lot of shock through the industry. Cronos is down over the last week. The exchange's daily volume has fallen from $4 billion highs to $284 million.

Damage control is being done by the dership.

Speculation surrounding the company's operations got so bad that Marszalek had to step in himself and argue that the criticism of the transfers amounted to nothing more than fear, uncertainty and doubt.

The collapse of FTX, formerly run by disgraced CEO Sam Bankman- Fried, has left a lasting impression on investors.

FTX went down like a house of cards after it turned out Bankman-Fried made some grave accounting errors and wasn't in a position to refunds customers.

The experts think the latest controversy won't be the same as the one before it.

Owen Rapaport, co- founder and CEO of Argus, told CNBC that the CEO's claims that their assets are backed1:1 are true.

According to the report, Marszalek has said that his company will publish an audited proof of reserves within a month.

Marszalek argued that his exchange's exposure to FTX was limited to $10 million after he made a $1 billion deal earlier.

He said they recovered over one billion dollars from FTX.

According to Marszalek, 20 percent of the erves on his website are made up of Shiba Inu coins.

Over the last week, there has been a lot of turmoil for thecryptocurrencies exchanges. The implosion of FTX has left a mark on investors, who are questioning the legitimacy of some of the largest exchanges.

The CEO of the company that accidentally sent $400 million to the wrong address called the concerns "fud".

Sam Bankman- Fried steps down as CEO of FTX.